IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE S.SIRI JAGAN THURSDAY, THE 14TH JULY 2011 / 23RD ASHADHA 1933 WP(C).No. 19080 of 2011(H) ---------------------------------------- PETITIONER(S): ------------------------- M/S.R.F.MOTORS (P) LTD., SKYLINE GATEWAY APARTMENT, PATHADIPALAM, EDAPPALLY, ERNAKULAM, A PRIVATE LIMITED COMPANY REPRESENTED BY ITS C.E.O. SRI.PALIKANDY ABOO JALEEL. BY ADV. SRI.E.P.GOVINDAN SMT.G.DEEPA RESPONDENT(S): --------------------------- 1. THE INTELLIGENCE INSPECTOR, SQUAD NO.1, COMMERCIAL TAXES, ALAPPUZHA-688 001. 2. THE COMMERCIAL TAX OFFICER, COMMERCIAL TAX OFFICE, FIRST CIRCLE, KALAMASSERY-682 024. 3. THE COMMISSIONER OF COMMERCIAL TAXES, KERALA AT VIKAS BHAVAN P.O., THIRUVANANTHAPURAM-695 001. 4. THE STATE OF KERALA, REPRESENTED BY THE SECRETARY, TAXES DEPARTMENT, GOVT. SECRETARIAT, THIRUVANANTHAPURAM-695 001. R1 TO R4 BY SR GOVERNMENT PLEADER SRI.C.K.GOVINDAN THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 14/07/2011, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: sts WP(C)NO.19080/2011 APPENDIX PETITIONER'S EXHIBITS: P1 COPY OF THE NOTICE DATED 77/2011 ISSUED BY THE FIRST RESPONDENT TO THE PETITIONER. P2 COPY OF THE PERMISSION GRANTED BY THE REGIONAL TRANSPORT OFFICE, ERNAKULAM, DATED 22/10/2010. P3 COPY OF THE REGISTRATION CERTIFICATE ISSUED TO THE PETITIONER BY THE SECOND RESPONDENT, DATED 31/3/2005. RESPONDENT'S EXHIBITS: NIL /TRUE COPY/ P.A.TO.JUDGE sts S. SIRI JAGAN, J. ------------------------------------------- W.P.(C) No.19080 OF 2011 ---------------------------------------------- Dated this the 14th day of July, 2011 JUDGMENT Petitioner is a Private Limited Company engaged in the business of selling cars. A car used by the petitioner for test driving was being driven by one prospective purchaser, which was seized by the 1st respondent on allegation of attempt to evade tax, which is under challenge in this writ petition. 2. Counsel for the petitioner submits that the entire proceedings are without jurisdiction in so far as there is no transport of goods as contemplated under the Kerala Value Added Tax Act for attracting provisions of of Section 47 (2) of the Act. Therefore, seizure and demand by Ext.P1 notice for cash security is clearly without jurisdiction and arbitrary is the contention raised. 3. I have heard learned Government Pleader also. I am of the opinion that in the first instance the question should be considered by the authority to conduct enquiry pursuant to W.P.(C)No.19080/11 2 Ext.P1 notice. Therefore, the writ petition is disposed of with the following directions: (i) The car shall be released to the petitioner immediately on the petitioner furnishing a simple bond without sureties for the amount covered by Ext.P1. (ii) The appropriate authority under the Act shall complete the proceedings initiated pursuant to Ext.P1 and pass appropriate orders, at any rate within 3 months from the date of receipt of a copy of this judgment. (iii) The authority shall specifically consider the question of jurisdiction raised by the petitioner and enter specific finding in respect thereof. S. SIRI JAGAN, JUDGE acd W.P.(C)No.19080/11 3 W.P.(C)No.19080/11 4