IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE K.M.JOSEPH FRIDAY, THE 28TH NOVEMBER 2008 / 7TH AGRAHAYANA 1930 WP(C).No. 35058 of 2008(W) -------------------------- PETITIONER(S): --------------- AUSTIN THOMAS PROPRIETOR, M/S.POPULAR LOGISTICS CWC EXTENSION, GV IYYER ROAD WILLINGTON ISLAND, KOCHI-3. BY ADV. SRI.S.RAMESH BABU RESPONDENT(S): --------------- 1. COMMERCIAL TAX INSPECTOR, COMMERCIAL TAX CHECKPOST, AMARAVILA, THIRUVANANTHAPURAM. 2. STATE OF KERALA, REP. BY ITS SECRETARY COMMERCIAL TAXES, SECRETARIAT THIRUVANANTHAPURAM. BY GOVERNMENT PLEADER SRI.C.K.GOVINDAN THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 28/11/2008, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: K.M. JOSEPH, J. ```````````````````````````````````````````````````` W.P.(C) No. 35058 OF 2008 W ```````````````````````````````````````````````````` Dated this the 28th day of November, 2008 J U D G M E N T Petitioner seeks to quash Exts.P3 and P6. Ext.P3 is a notice issued under section 47(2) of the KVAT Act. Case of the petitioner in brief is as follows. Petitioner on behalf of M/s.L & T Ltd. sought to transport a 12 tone crane from Nagarcoil to Kozhikode via Thiruvananthapuram. The crane belonged to M/s.Sana Engineering Company Ltd. The trailer and crane were detained at the Amaravila check post. It is the apprehension that no one had guaranteed that the vehicle would be taken back and if any sale is made during the course of execution of the pipeline works there will be evasion of tax. Defects are stated in Ext.P2. It is stated that both the consignor and consignee are not registered dealers. Petitioner has produced Ext.P4 letter from M/s.Sana Engineering Company Ltd. to contend that the crane is not for sale and it will be brought back after completion of L & T work at Kozhikode. Ext.P5 is issued by L & T Ltd. stating, inter alia, that the petitioner WPC.35058/08 : 2 : is mobilizing the crane from Nagarcoil to Kozhikode and there is no commercial sale involved. Further, it is stated that the above Hydra Crane will be taken back after completion of their work at Kozhikode. Ext.P6 is a communication by the Commercial Tax Inspector to M/s.Sana Engineering Company Ltd. reiterating demand for security. 2. I heard learned counsel for the petitioner and learned Government Pleader. Learned counsel for petitioner would reiterate the contention. He would further contend that as per Schedule III of the KVAT Act, the used motor vehicle only attracts tax at 4%. He also submits that the actual value of the vehicle is only in the region of Rs.4 lakhs being a 2005 model. Learned Government Pleader does not dispute that used motor vehicle attracts 4% tax under Schedule III of the Act. 3. Having regard to the facts of the case, writ petition is disposed of as follows: Exts.P3 and P6 are modified and it is ordered that if the petitioner furnishes bank guarantee for a sum of Rs.80,000/- (Rupees eighty thousand only) and also a simple bond is furnished WPC.35058/08 : 3 : by M/s.L & T Ltd., which has issued Ext.P5, for the balance amount demanded in Ext.P3, the vehicle will be released to the petitioner forthwith. Sd/- (K.M.JOSEPH, JUDGE) aks // TRUE COPY // P.A. TO JUDGE