IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM TUESDAY, THE 8TH SEPTEMBER 2009 / 17TH BHADRA 1931 WP(C).No. 25355 of 2009(L) -------------------------- PETITIONER: ------------------ M/S.MANJILAS RICE MILL, KOTTEKKAD, P.O.KUTTOOR, THRISSUR, REPRESENTED BY ITS SENIOR MANAGER ADMINISTRATION MR.V.K.SASIDHARAN. BY ADV. SMT.K.LATHA RESPONDENTS: --------------------- 1. THE STATE OF KERALA REPRESENTED BY THE CHIEF SECRETARY TO THE GOVERNMENT OF KERALA, THIRUVANANTHAPURAM. 2. THE COMMERCIAL TAX INSPECTOR, COMMERCIAL TAX CHECK POST, VAZHIKKADAVU. 3. ASSISTANT COMMISSIONER (ASSMT), KVAT SPECIAL CIRCLE, THRISSUR. BY GOVERNMENT PLEADER SRI.C.K.GOVINDAN. THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 08/09/2009, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: app/- C.K.ABDUL REHIM, J - - - - - - - - - - - - - - - - - - - - - - - W.P.(C) No.25355 of 2009 - - - - - - - - - - - - - - - - - - - - - - - Dated this the 8th day of September, 2009 J U D G M E N T 1. Petitioner is a registered dealer under the KVAT Act and CST Act borne on the files of the third respond, assessing authority. The petitioner purchased a Generator set from a dealer in Karnataka, as per Ext.P2 invoice. According to the petitioner the Generator set is meant for installation at their factory and the purchase is made against issuance of 'C' Form, since only 2% Central Sales Tax was collected by the consignor. But the transport was detained by the second respondent at the Check Post and notice under section 47(2) of the KVAT Act was issued, as evidenced by Ext.P3. As per Ext.P3 petitioner was requested to furnish security to the tune of Rs.1,04,900/- for permitting onward transport. The main reason for detention as enumerated in Ext.P3 is that the petitioner is not authorised to purchase Generator set as per the certificate of registration, at the reduced rate of CST. But it W.P.(C) No.25355 of 2009 2 is contended by the petitioner that in the registration certificate of the petitioner, machineries are also included under the description of goods dealt with, by way of amendment incorporated, with effect from 28.7.2009. Ext.P1 is the certificate of registration produced in this regard. 2. Heard the learned Government Pleader. It is contended that even assuming the machineries are included in the registration certificate, that will not entitle them for purchase of Generator set at the reduced rate of CST by issuance of 'C' Form. The machineries and Generator set are different commodities, is the contention. Hence it is insisted that release of goods may be ordered only on the petitioner furnishing proper security for the amount demanded in Ext.P3. 3. Having considered the facts and circumstances of the case, I notice that the petitioner is a registered dealer under the third respondent. Further there is no prima facie W.P.(C) No.25355 of 2009 3 evidence to show that the transport of Generator set was for any purpose other than own use of the petitioner at their factory. However, since the adjudication as contemplated under Section 47(2) is yet to be conducted, I am not entering upon any finding regarding the liability for payment of tax with respect to the goods under transport. But considering the proviso to Section 47(2) of the Act and having regard to the nature of the goods and other relevant matters, I am inclined to direct release of the goods along with vehicle on the petitioner furnishing a bond. The adjudication as contemplated under Section 47(2) need be completed at the earliest. 4. In the result, the petition is disposed of directing the second respondent to release the goods detained under Ext.P3 along with vehicle on the petitioner furnishing Security Bond as provided under the KVAT Rules, without sureties, for the amount demanded under Ext.P3. The appropriate authority shall expedite the adjudication W.P.(C) No.25355 of 2009 4 proceedings and finalise the same after hearing the petitioner as early as possible, at any rate within a period of two months from the date of release of the goods. C.K.ABDUL REHIM JUDGE app/-