THE HONOURABLE MRS. JUSTICE T. MEENA KUMARI AND THE HON’BLE MR. JUSTICE RAMESH RANGANATHAN WRIT PETITION No. 22218 OF 2008 ORAL ORDER: (Per T. Meena Kumari, J) The Writ Petition is ﬁled against the seizure of the petitioner’s vehicle Tractor bearing No. AP 15 V 9163 and Trailor bearing No. AP 15V 9164 and sought a direction to release the said vehicle. Heard the learned Government Pleader. On instructions, the learned Government Pleader submits that the total liability is Rs.50,600/- comprising tax of Rs. 17,120/-, penalty of Rs.33,480/- and compounding fee of Rs.3,100/-. The learned counsel for the petitioner submits that the penalty is very higher side. The learned counsel for the petitioner further submits that since the vehicle in question was used for agricultural purpose, which was exempted from the tax by the Government, the penalty on the said vehicle cannot be imposed. But, however, we make it clear that the said contention has to be gone into in a regular inquiry. Therefore, we are of the opinion that the said vehicle can be released on deposit of Rs.20,000/- comprising of tax and the compound fee. The learned counsel for the petitioner also submits that liberty may be given to the petitioner to pay the said amount of Rs. 20,000/- in installments. Accordingly, the Tractor bearing No. AP 15 V 9163 and Trailor bearing No. AP 15V 9164 shall be released on deposit of Rs. 20,000/- by the petitioner towards tax and the compound fee. However, liberty is given to the petitioner to pay the said sum of Rs. 20,000/- in two equal installments of Rs. 10,000/- each. Further we make it clear that this Order does not preclude the authorities from conducting any regular inquiry. Taking note of the contentions raised by the learned counsel for the petitioner that the authorities have no power to impose penalty and the vehicle has to be exempted from the tax, which was used for agricultural purpose, the imposition of penalty is subject to the result of the inquiry. Accordingly, the Writ Petition is disposed of with the above directions. _______________________ T. MEENA KUMARI, J _______________________________ RAMESH RANGANATHAN, J 14.10.2008 N.B. C.C. by Thursday. B.O. CHV