IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.N.RAMACHANDRAN NAIR & THE HONOURABLE MR. JUSTICE B.P.RAY WEDNESDAY, THE 15TH DECEMBER 2010 / 24TH AGRAHAYANA 1932 WP(C).No. 36692 of 2010(J) -------------------------- PETITIONER: --------------- K.V.SHIRAS, S/O.HAMZU,AGED 38 YEARS, PROPRIETOR, NEHA LEATHER 40/8150, NARAKATHARA ROAD, COCHIN 682 035,BRANCH TMJ BUILDING, RAMANCHIRA,THIRUVALLA. BY ADV. SRI.C.S.MANU SRI.S.K.PREMRAJ RESPONDENTS: --------------- 1. STATE OF KERALA,REP.BY THE SECRETARY, TAXES DEPARTMENT,GOVERNMENT OF KERALA, SECRETRIAT,TRIVANDRUM 695 001. 2. COMMISSIONER OF COMMERCIAL TAXES, TRIVANDRUM,PIN 695 001. 3. DEPUTY COMMISSIONER (INTELLIGENCE) COMMERCIAL TAXES, TRIVANDRUM,PIN 695 001. 4. INTELLIGENCE OFFICER, INTELLIGENCE SQUAD NO.2,COMMERCIAL TAXES DEPARTMENT, THIRUVALLA,PATHANAMTHITTA 689 101. 5. INTELLIGENCE INSPECTOR, INTELLIGENCE SQUAD NO.2, COMMERCIAL TAXES DEPARTMENT, THIRUVALLA, PATHANAMTHITTA 689 101. BY G.P. SRI.MOHAMMED RAFIQ THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 15/12/2010, THE COURT ON 15/12/2010 DELIVERED THE FOLLOWING: C.N.RAMACHANDRAN NAIR & BHABANI PRASAD RAY, JJ. .................................................................... W.P.(C) No.36692 of 2010 .................................................................... Dated this the 15th day of December, 2010. JUDGMENT Ramachandran Nair, J. W.P.(C) is filed challenging notice issued under Section 47(2) of the KVAT Act. Petitioner's case is that petitioner is a wholesaler with registration under the KVAT Act remitting tax on regular basis. Government Pleader after taking instruction submitted that sale is to sister concern and by virtue of the irregularities noticed, detailed enquiry has to be conducted. The learned Single Judge ordered release of the goods on furnishing Bank Guarantee for 50% of the amount demanded and security bond for the balance 50%. Considering the amount of tax being remitted by the petitioner every month and since petitioner has already furnished security for the registration maintained under the KVAT Act, we feel the direction of the learned Single Judge to furnish Bank Guarantee for 50% of the security amount can be dispensed with because if penalty happens to be levied, there cannot be any difficulty to recover the amount from the petitioner. We, therefore, 2 dispose of the W.P.(C) directing respondents to release the goods on furnishing a simple bond without surety for the security amount and along with it a copy of the certificate of registration issued to the petitioner under the KVAT Act. The interim order of the learned Single Judge shall stand modified to the above extent. The enquiry officer is directed to complete the enquiry and finalise the adjudication within a period of two months from now. C.N.RAMACHANDRAN NAIR Judge BHABANI PRASAD RAY Judge pms