IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE ANTONY DOMINIC WEDNESDAY, THE 19TH MARCH 2008 / 29TH PHALGUNA 1929 WP(C).No. 8021 of 2008(E) ------------------------- PETITIONER: ------------ 1. SHINOY THOLATH, OLD KAMBOTTY ROAD, TOLL TAX NAKA, NAGPUR, PIN - 440 026. 2. K.KRISHNARAJU, S/O.KANAKARAJU, NO.65, 10/129D, VANDIPEETU, GUDALOOR, NILGIRI DISTRICT. PIN - 643 212. BY ADV. SRI.ARIKKAT VIJAYAN MENON SRI.HARISANKAR V. MENON RESPONDENTS: ------------- 1. INTELLIGENCE OFFICER, SQUAD NO.II, THALASSERY - 670 701. 2. INSPECTING ASSISTANT COMMISSIONER, INTELLIGENCE, DEPARTMENT OF COMMERCIAL TAXES, KANNUR - 670 301. 3. DEPUTY COMMISSIONER, INTELLIGENCE, DEPARTMENT OF COMMERCIAL TAXES, KOZHIKODE - 673 005. 4. K.R.GOPI, PROPRIETOR, SABITHA SUPARI TRADERS, HILL PRODUCE DEALER, CHALISSERY, PALAKKAD - 679 536. R1 BY GOVERNMENT PLEADER SRI MANOJ CHANDRAN THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 19/03/2008, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: ANTONY DOMINIC, J. ------------------------------------ W.P.(C) 8021 of 2008 ------------------------------------- Dated: MARCH 19, 2008 JUDGMENT In this writ petition, the prayer sought for is to direct respondents 1 and 2 to release the vehicles bearing registration Nos.CG 04/JA 4290 and TN 46 D - 3926 to the petitioners after accepting thrice the amount of tax or Rs.1 lakh, whichever is higher, in of confiscation under sec.49(4) AND 49(5) of the KVAT Act. 2. The prayer for release of the lorry has been opposed by the respondents on the ground that in terms of the provisions in the Act, only the truck and the goods can be released together. However, it is now disclosed that there is a separate proceedings pending against the goods which were under transport and therefore it may not be possible to consider the release of the goods atleast at this stage. 3. Having regard to the fact that the petitioners are the registered owners of the trucks involved in this case and their liability is three times the tax or Rs.1 lakh whichever is higher, I feel the interests of the Revenue will be protected if the trucks in question are released by directing deposit of three times the tax WP(C) 8021/08 Page numbers payable or Rs.1 lakh, whichever is higher. Therefore these trucks shall be released on the petitioners remitting thrice the amount of tax payable or Rs.1 lakh, whichever is higher. 4. It is also stated by the respondents that penalty proceedings are pending in terms of Exts.R1(c) and R1(d). In view of the pendency of the penalty proceedings as now disclosed, it is necessary that sufficient safeguard is provided by the petitioners pending finalisation of the penalty proceedings, for getting the trucks released. 5. In view of this, I also direct that for the amount of penalty that is now proposed by Exts.R1(c) and R1(d), the petitioners shall furnish bank guarantee for the full amount to the satisfaction of the 2nd respondent before the release of the vehicles. The encashment of the bank guarantee will depend upon the outcome of the penalty proceedings and the petitioners shall keep the bank guarantee alive until the proceedings are finalised. 6. It is also clarified that the directions issued in this judgment shall be without prejudice to any proceedings that are WP(C) 8021/08 Page numbers taken by the respondents against the goods under transport by the petitioners. Writ petition is disposed of as above. ANTONY DOMINIC, JUDGE mt/-