IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE K.SURENDRA MOHAN FRIDAY, THE 16TH SEPTEMBER 2011 / 25TH BHADRA 1933 WP(C).No. 24706 of 2011(K) -------------------------- PETITIONER: -------------- EXPRESS EQUIPMENT RENTAL & LOGISTICS PVT LTD.,HAVING OFFICE AT ALKAPURI,VADODARA,GUJARATH, REP.BY ITS AUTHORISED SIGNATORY SRI.BANSIDHAR J.PANDEY. BY ADV. SMT.SUMATHY DANDAPANI, SENIOR ADVOCATE SRI.MILLU DANDAPANI RESPONDENTS: ----------------- 1. THE COMMERCIAL TAX INSPECTOR, COMMERCIAL TAX CHECK POST,WALAYAR 678 625. 2. STATE OF KERALA,REP.BY ITS FINANCE SECRETARY,SECRETARIAT,THIRUVANANTHAPURAM 695 001. BY SENIOR GOVT. PLEADER, SRI.C.K. GOVINDAN. THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 16/09/2011, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).No. 24706 of 2011(K) APPENDIX PETITIONER'S EXHIBITS: EXT.P1 : TRUE COPY OF THE WORK ORDER EXT.P2 : TRUE COPY OF THE WORK ORDER EXT.P3 : TRUE COPY OF THE WORK ORDER EXT.P4 : TRUE COPY OF THE WORK ORDER EXT.P5 : TRUE COPY OF NOTICE OR NO.232/A/11-12 DATED 5.9.2011 EXT.P6 : TRUE COPY OF NOTICE OR NO.231/A/11-12 DATED 5.9.2011 EXT.P7 : TRUE COPY OF NOTICE OR NO.230/A/11-12 DATED 5.9.2011 EXT.P8 : TRUE COPY OF NOTICE OR NO.229/A/11-12 DATED 5.9.2011 EXT.P9 : TRUE COPY OF NOTICE OR NO.228/A/11-12 DATED 5.9.2011 EXT.P10 : TRUE COPY OF NOTICE OR NO.227/B/11-12 DATED 5.9.2011 /TRUE COPY/ PA TO JUDGE K. SURENDRA MOHAN, J. - - - - - - - - - - - - - - - - - - - - - - - - - - - W. P.(C) No. 24706 OF 2011 - - - - - - - - - - - - - - - - - - - - - - - - - - - Dated this the 16th day of September, 2011 JUDGMENT Admit. Though as per order dated 13.09.2011 this case was directed to be posted after Onam holidays, on the request of the counsel for the petitioner, as well as the learned Government Pleader who is appearing in this case, the matter is taken up today. 2. The counsel for the petitioner submits that 10 trucks laden with goods in transit from the State of Kerala to the State of Gujarat are detained by the 1st respondent at the Walayar Check Post and that with every passing day, the petitioner is incurring huge amounts as losses. 3. The learned Government Pleader on the other hand submits that the goods are being transported without proper supporting documents and that both the consignor and the consignee are not registered as dealers under the Kerala Value Added Tax Act. Therefore, whether there is any evasion of tax or not can be ascertained only after the adjudication process is over. WP(C) No.24706 of 2011 -:2:- However, the counsel for the petitioner submits that the detention of vehicles and goods for an indefinitely long period of time in anticipation of completion of the adjudication process is absolutely uncalled for, since interests of the Revenue could be protected by demanding sufficient security. 4. In view of the fact that evasion of tax is suspected by the 1st respondent, the matter can be determined one way or the other only by way of adjudication. However, it is true that the goods and the vehicles are unnecessary to be detained until such adjudication process is over. The interests of the Revenue can be protected on the petitioner furnishing security for the suspected evasion. Therefore, I am of the view that, the vehicles and goods can be directed to be released to the petitioner on the petitioner furnishing sufficient security as provided under Rule 19 (2) of the Kerala Value Added Tax Rules. The petitioner is directed to secure 50% of the demanded amount with bank guarantee from any nationalised bank. For the rest of the amount, the petitioner may furnish security to the satisfaction of the 1st respondent in one of the other modes prescribed by Rule WP(C) No.24706 of 2011 -:3:- 19(2). The 1st respondent shall complete the adjudication process within a period of three months from today. The Writ Petition is disposed of as above. K. SURENDRA MOHAN, JUDGE ttb