IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE S.SIRI JAGAN WEDNESDAY, THE 31ST AUGUST 2011 / 9TH BHADRA 1933 WP(C).No. 23537 of 2011(N) -------------------------------------- PETITIONER(S): ----------------------- M/S.SHRIRAM CITY UNION FINANCE LIMITED, 39/3500, 1ST FLOOR, MANIKKATH CROSS ROAD, RAVIPURAM, COCHIN- 682 016, REPRESENTED BY ITS SENIOR MANAGER, SRI.S. RAJAGOPALAN. BY ADV. SRI.TOMSON T.EMMANUEL RESPONDENT(S): -------------------------- 1. COMMERCIAL TAX INSPECTOR, COMMERCIAL TAXES CHECK POST, WALAYAR- 678 101. 2. COMMISSIONER OF COMMERCIAL TAXES, PUBLIC OFFICE BUILDING, NEAR MUSEUM, THIRUVANANTHAPURAM-695 033. 3. STATE OF KERALA, REPRESENTED BY SECRETARY TO GOVT. (DEPARTMENT OF TAXES), SECRETARIAT, THIRUVANANTHAPURAM-695 001. R1 TO R3 BY GOVT. PLEADER MR.C.K. GOVINDAN. THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 31/08/2011,THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: rs WP(C).No. 23537 of 2011(N) APPENDIX PETITIONER'S EXHIBITS: EXT.P1: COPY OF THE CERTIFICATE OF REGISTRATION NO.07-00458 DATED 17/04/2007 ISSUED BY GENERAL MANAGER, RESERVE BANK OF INDIA, REGIONAL OFFICE, CHENNAI TO THE PETITIONER COMPANY FOR CONDUCTING THE BUSINESS NON-BANKING FINANCIAL INSTITUTION. EXT.P1(a): COPY OF THE CERTIFICATE OF REGISTRATION NO.CC.16/2450 DATED 19/05/2008 ISSUED BY ASSISTANT LABOUR OFFICER, COCHIN, FOR THE BRANCH OFFICE AT COCHIN. EXT.P2: COPY OF THE TAX INVOICE NO.SBS/12/11-12 DATED 25/08/2011 RAISED BY THE PETITIONER, FOR THE INTERSTATE SALE OF MODULAR FURNITURE, AFTER COLLECTING FULL RATE OF CENTRAL SALES TAX AS PER THE LAW OF THE CONSIGNOR STATE. EXT.P3: COPY OF THE CERTIFICATE OF OWNERSHIP IN FORM NO.16 DATED 25/08/2011, ISSUED BY THE PETITIONER TO THE CONSIGNOR FOR THE PURPOSE OF ACCOMPANYING WITH EXT.P2 TAX INVOICE. EXT.P4: COPY OF THE NOTICE NO.OR.422/4/11-12 DATED 27/08/2011, ISSUED BY THE 1ST RESPONDENT, TO THE PETITIONER, IN DEMANDING SECURITY DEPOSIT, THROUGH THE DRIVER OF TRANSPORT VEHICLE. EXT.P5: COPY OF THE REPLY DATED 27/08/2011 SUBMITTED BY THE PETITIONER, ON THE SAME DAY AGAINST EXT.P4 NOTICE, BEFORE THE 1ST RESPONDENT, ACKNOWLEDGED IT BY DUTY COMMERCIAL TAX OFFICER. EXT.P5(a): COPY OF THE CERTIFICATE OF REGISTRATION IN FORM NO.B DATED 09/03/20101, ISSUED TO THE CONSIGNOR OF THE GOODS, UNDER THE CENTRAL SALES TAX ACT AT CHENNAI. EXT.P5(b): COPY OF THE CERTIFICATE OF REGISTRATION DATED 09/03/2011, ISSUED TO THE CONSIGNOR OF THE GOODS, UNDER THE TAMIL NADU VALUE ADDED TAX ACT, 2006. EXT.P6: COPY OF THE CIRCULAR NO.20/2006 DATED 08/05/2006 ISSUED BY THE 2ND RESPONDENT IN CLARIFYING THAT FOR INCOMING GOODS, COMING FROM OUTSIDE THE STATE, NOT TO INSIST DOCUMENT UNDER THE CONSIGNEE STATE LAWS. EXT.P7: COPY OF THE JUDGMENT OF THIS HONOURABLE COURT REPORTED IN KTR 244(KER) IN THE CASE OF RASAL TRADE LINKS Vs. SALES TAX INSPECTOR & ORS., UPON A SIMILAR SITUATION. EXT.P8: COPY OF THE LETTER DATED 28/08/2011 ISSUED TO THE PETITIONER BY THE 1ST RESPONDENT, IN REQUIRING TO FURNISH BANK GUARANTEE, FOR THE AMOUNT DEMANDED IN EXT.P4. RESPONDENT'S EXHIBITS: NIL. //TRUE COPY// P.A. TO JUDGE rs S. SIRI JAGAN, J. - - - - - - - - - - - - - - - - - - - - - - - W.P.(C)No.23537 of 2011 - - - - - - - - - - - - - - - - - - - - - - - Dated this the 31st day of August, 2011 J U D G M E N T Certain goods transported by the petitioner has been detained by the 1st respondent on allegation of attempt to evade tax primarily on the ground that the petitioner is not a registered dealer. The petitioner's contention is that, the petitioner is not liable to take out registration since the petitioner is a non-banking financial institution. The petitioner therefore seeks release of the goods and vehicle unconditionally. 2. This is opposed by the learned Government Pleader. According to him, the contentions of the petitioner are to be verified and if in the meanwhile the goods have to be released to the petitioner, the petitioner has to provide sufficient guarantee insofar as the petitioner is not a registered dealer. Having heard both sides, I dispose of this writ petition W.P.(C)No.23537 of 2011 -2- with a direction to the respondents to release the goods and vehicle to the petitioner, on the petitioner depositing 50% of the amount covered by Ext.P4 and furnishing a simple bond without sureties for the balance amount. The appropriate authority under the Act shall complete the proceedings pursuant to Ext.P4 as expeditiously as possible, at any rate, within a period of three months from the date of receipt of a copy of this judgment. The security furnished by the petitioner shall be dealt with in accordance with the final orders to be passed. The deposit of the 50% can either be by the consignor or by the consignee. But the bond shall be executed by both together. Sd/- S. SIRI JAGAN JUDGE //True copy// P.A. TO JUDGE shg/