IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE S.SIRI JAGAN TUESDAY, THE 6TH SEPTEMBER 2011 / 15TH BHADRA 1933 WP(C).No. 24376 of 2011(V) -------------------------- PETITIONER(S): --------------- SAJIN JOY, M/S.PLANET CONSTRUCTIONS, CC 32/364-A4,R.NO.110,PALACKAL BUILDING MASJID ROAD,PALARIVATTOM,PIN 682 015. BY ADV. SRI.P.N.DAMODARAN NAMBOODIRI RESPONDENT(S): --------------- 1. THE COMMERCIAL TAX INSPECTOR, SQUAD NO.VII,DEPT.OF COMMERCIAL TAXES, ERNAKULAM 682 015. 2. THE COMMERCIAL TAX OFFICER, COMMERCIAL TAXES CHECK POST, WALAYAR 678 625. 3. THE COMMERCIAL TAX OFFICER (WC) COMMERCIAL TAXES, ERNAKULAM 682 015. GOVERNMENT PLEADER SHRI.C.K.GOVINDAN THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 06/09/2011, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: W.P.(C).No. 24376/2011 APPENDIX PETITIONER(S) EXHIBITS EXHIBIT P1. TRUE COPY OF THE REGISTRATION CERTIFICATE UNDER KERALA VALUE ADDED TAX NO.332072049887 DATED 25.10.2008 ISSUED BY THE 3RD RESPONDENT TO THE PETITIONER. EXHIBIT P2. TRUE COPY OF THE INVOICE NO. 1191001320 DATED 30.08.2011 ISSUED BY THE SUPPLIER TO THE PETITIONER. EXHIBIT P3. TRUE COPY OF THE CERTIFICATE OF OWNERSHIP IN FORM NO.16 ISSUED BY THE PETITIONER. EXHIBIT P4. TRUE COPY OF THE NOTICE NO. OR 40/2011-12 DATED 04.09.2011 ISSUED BY THE IST RESPONDENT. sdk+ ///True copy/// P.A. to Judge S.SIRI JAGAN, J. ================== W.P.(C).No. 24376 of 2011 ================== Dated this the 6th day of September, 2011 J U D G M E N T The petitioner is a contractor and a registered dealer under the Kerala Value Added Tax Act. He wanted to purchase a heavy duty excavator from M/s.JCB India Ltd. While that excavator was being transported by the petitioner, the same was detained on allegation of attempt to evade tax by issuing Ext.P4 notice. The allegation in Ext.P4 notice is that the petitioner has not obtained prior permission from the assessing authority for purchasing a capital good insofar as the excavator is not one of the items endorsed in the registration certificate of the petitioner. According to the petitioner, the petitioner purchased the excavator by paying full tax and also with declaration in form No.60. Therefore, according to the petitioner, there is absolutely no reason to suspect evasion of tax. The petitioner, therefore, seeks release of the good and the vehicle unconditionally. 2. This is opposed by the learned Government Pleader. According to him, when admittedly the excavator is a capital good, the petitioner should have necessarily obtained prior permission from the assessing authority for purchasing the same, which he has not done. Therefore, there is sufficient reason for suspecting evasion of tax, is his contention. w.p.c.24376/11 2 3. Having heard both sides, I dispose of this writ petition with a direction to the 1st respondent to release the excavator and the vehicle on the petitioner depositing 25% of the amount demanded in Ext.P4 and furnishing a simple bond without sureties for the balance amount. The appropriate authority under the Act shall complete proceedings pursuant to Ext.P4, as expeditiously as possible, at any rate, within three months from the date of receipt of a certified copy of this judgment. The security furnished by the petitioner shall be dealt with in accordance with the final orders to be passed. Sd/- sdk+ S.SIRI JAGAN, JUDGE ///True copy/// P.A. to Judge