IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE K.M.JOSEPH MONDAY, THE 9TH FEBRUARY 2009 / 20TH MAGHA 1930 WP(C).No. 2887 of 2009(R) -------------------------------------------- PETITIONER(S): ---------------------- C.KHADER, S/O.MAMMI,CHOAYIL HOUSE, CHIRRAKKALKULAM, KANNUR. BY ADV. SRI.RAJESH NAMBIAR RESPONDENT(S): ------------------------- 1. COMMERCIAL TAX OFFICER-II,1ST CIRCLE, KANNUR. 2. STATE OF KERALA, REPRESENTED BY SECRETARY TO GOVT, DEPARTMENT OF COMMERCIAL TAXES, SECRETARIAT, THIRUVANANTHAPURAM. BY GOVERNMENT PLEADER SHRI C.K. GOVINDAN THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 09/02/2009, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: K. M. JOSEPH, J. -------------------------------------- W.P.C. NO. 2887 OF 2009 R -------------------------------------- Dated this the 9th February, 2009 JUDGMENT Petitioner challenges Ext.P5. Petitioner applied for registration as a dealer in live chicken under the KVAT Act and CST Act by filing application. Ext.P2 is a notice issued by the Commercial Tax Officer. Therein, reference is made to the Report of the Deputy Commissioner (Intelligence), wherein it is stated that the petitioner does not hold property of his own and is not financially sound and it necessitates for furnishing of sufficient security for granting registration. Further, taking note of the fact that as per the Books of Account as on 24.8.2008, he has only Rs.1,74,792/= as his capital, sufficient security is needed as the dealer intends inter-State purchase and sale of live chicken. It is stated that at present the applicant is not capable to provide sufficient security and it is proposed to reject the application. Petitioner submitted Ext.P3. He denies in Ext.P3 that he is not capable for offering security. It is stated that he is WPC.2887/09 R 2 ready to furnish security. Ext.P5 is the order, taking note of Circular 4/07 and the notice and the state of Accounts as on 24.8.2008 and further finding the readiness of the petitioner to furnish security in any form is unreliable, the application was rejected. 2. I heard Shri Rajesh Nambiar, learned counsel for the petitioner and the learned Government Pleader. Learned counsel for the petitioner submits that in terms of Section 16 of the KVAT Act read with Rule 17 of the KVAT Rules, the Authority has acted illegally in not granting registration. He also took me through Circular No.4/07. No doubt, the Circular actually provides that in case of a dealer seeking registration in regard to the business of live chicken, he must have a place of his own to store live chicken. Anyway, the petitioner is prepared to furnish security. In such circumstances, I feel that the matter should be reconsidered in accordance with law and Ext.P5 is quashed. There will be a direction to the first respondent to take a decision in accordance with law. The WPC.2887/09 R 3 petitioner shall be present before the first respondent at 11 AM on 17.02.2009 and the first respondent shall proceed to take a decision in accordance with law within a period of ten days thereafter. The Writ Petition is disposed of as above. Sd/= K. M. JOSEPH, JUDGE kbk. // True Copy // PS to Judge