IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE K.M.JOSEPH TUESDAY, THE 17TH MARCH 2009 / 26TH PHALGUNA 1930 WP(C).No. 6998 of 2009(T) ------------------------------------ PETITIONER(S): ---------------------- N.P.ABRAHAM, PROPRIETOR, ASIAN RUBBER TRADERS, ATHIYODI P.O., KOORACHUNDU, KOZHIKODE DISTRICT. BY ADV. SRI.K.I.MAYANKUTTY MATHER SMT.S.AMINA RESPONDENT(S): ------------------------- 1. INTELLIGENCE INSPECTOR, SQUAD NO.II, COMMERCIAL TAXES, KOZHIKODE. 2. INSPECTING ASSISTANT COMMISSIONER (INTELLIGENCE), COMMERCIAL TAXES, KOZHIKODE. 3. COMMERCIAL TAX OFFICER, COMMERCIAL TAXES, PERAMBRA. BY GOVERNMENT PLEADER SRI.C.K.GOVINDAN. THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 17/03/2009, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: K.M.JOSEPH, J. ------------------------------------------------------ W.P.(C) No.6998 of 2009-T ---------------------------------------------- Dated, this the 17th day of March, 2009 J U D G M E N T Petitioner challenges Ext.P4 and seeks a direction to the Ist respondent to release the Lorry bearing Registration No.KL-56/1690. Ext.P4 is a notice issued under Section 47 (2) of the Kerala Value Added Tax Act, 2003 ('KVAT Act' for short). Security is demanded besides advance tax, cess and penalty under Section 69 (1) of the KVAT Act. By interim order, this court directed to release the vehicle on furnishing bank guarantee for advance tax, security deposit and cess. The goods are stated to have been released. Regarding the demand for penalty under Section 69 (1) of the KVAT Act, by yet another interim order it is ordered that Ext.P4 will be treated as a notice and if the petitioner files objection a decision will be taken on the same. It is common case that there is no proceedings under Section 47 (4) of the KVAT Act which enables detention of the vehicle. Section 69 (2) of the KVAT Act also empowers detention. There is no proceedings under Section 47 (4) or Section 69 (2) of the WPC No. 6988/2009 -2- KVAT Act. In such circumstances, while proceedings for imposition of penalty may go on in accordance with law, detention of the vehicle appears to be unsustainable. Accordingly, the writ petition is disposed of as follows: Adjudication pursuant to Section 47 (2) of the KVAT Act can go on and can be concluded in accordance with law within two months from the date of production of a copy of this judgment. In the meantime the vehicle bearing Registration No.KL-56/1690 will be forthwith released. (K.M.JOSEPH) JUDGE. MS