IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HON'BLE THE ACTING CHIEF JUSTICE MR.C.N.RAMACHANDRAN NAIR & THE HONOURABLE MR. JUSTICE P.S.GOPINATHAN THURSDAY, THE 3RD NOVEMBER 2011 / 12TH KARTHIKA 1933 WA.No. 1667 of 2011() --------------------- AGAINST THE JUDGEMENT/ORDER IN WPC.29129/2011 Dated 02/11/2011 .................... APPELLANT(S): / PETITIONER -------------- SCIENTIFIC MEDICAL EQUIPMENTS KERALA (P) LTD. XIII/251 A, OPP. KERALA WATER AUTHORITY EROOR SOUTH, PIN - 682 306. REPRESENTED BY BALASUBRAMANIAN, AUTHORISED SIGNATORY BY ADV. SRI.A.KUMAR RESPONDENT(S): / RESPONDENT --------------- COMMERCIAL TAX INSPECTOR COMMERCIAL TAX CHECK POST WALAYAR, PIN - 678 623. BY SPL.GOVERNMENT PLEADER, MR.BOBY JOHN THIS WRIT APPEAL HAVING COME UP FOR ADMISSION ON 03/11/2011, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: C.N.RAMACHANDRAN NAIR, Ag.CJ. & P.S.GOPINATHAN, J. .................................................................... W.A. No.1667 of 2011 .................................................................... Dated this the 3rd day of November, 2011. J U D G M E N T Ramachandran Nair, Ag.CJ. Dispute is only on the rate of tax on the product sold interstate. While appellant's case is that the rate of tax applicable is 4%, Department's case is that the rate applicable is 12.5%. There is no case that the goods were not transported under cover of proper documents. The only dispute is that the tax collection shown in the invoice accompanying the goods is less than the actual rate. In these circumstances, we feel that the demand of cash security for release of goods is not justified, more so when appellant has valid registration under the KVAT Act. We, therefore, allow the Writ Appeal by vacating the judgment of the learned Single Judge and we dispose of the Writ Petition directing the respondents to release the goods on the appellant furnishing simple bond without surety for the W.A.No.1667/2011 2 security amount along with a copy of the certificate of Registration, certified by the assessing authority to be true copy. The respondents are free to conduct inspection of the goods and make an inventory note, so that identity should not be a matter of dispute at the time of adjudication, wherein rate of tax with reference to identity and issue will arise for consideration. Issue photocopy today itself. (C.N.RAMACHANDRAN NAIR, ACTING CHIEF JUSTICE) (P.S.GOPINATHAN, JUDGE) jg