IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE K.VINOD CHANDRAN TUESDAY, THE 6TH DECEMBER 2011 / 15TH AGRAHAYANA 1933 WP(C).No. 28535 of 2005(V) -------------------------- PETITIONER(S): ------------------------ PRECOT MILLS LTD., “A” UNIT KANJIKODE WEST P.O. PALAKKAD 678 623, KERALA, REPRESENTED BY ITS ADMINISTRATION, MANAGER, T.V.ANANTHAKRISHNAN. BY ADVS. SRI.E.K.NANDAKUMAR SRI.A.K.JAYASANKAR NAMBIAR SRI.ANIL D. NAIR RESPONDENT(S): ------------------------ 1. THE ASSISTANT COMMISSIONER OF COMMERCIAL TAXES (ASSMT), SPECIAL CIRCLE, PALAKKAD. 2. THE SALES TAX INSPECTOR, SALES TAX CHECK POST, WALAYAR, PALAKKAD. 3. STATE OF KERALA, REPRESENTED BY THE SECRETARY TO GOVERNMENT, TAXES DEPARTMENT, KERALA GOVERNMENT, SECRETARIAT, THIRUVANANTHAPURAM BY GOVT. PLEADER SRI. MANOJ P. KUNJACHAN THIS WRIT PETITION (CIVIL) HAVING BEEN FINALLY HEARD ON 06/12/2011, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).No. 28535 of 2005(V) APPEANDIX: PETITIONER'S EXHIBITS: EXT.P1: TRUE COPY OF THE INVOICE DATED 5.10.2005 ISSUED BY VENDOR AT COIMBATORE TO THE PETITIONER. EXT.P2: TRUE COPY OF THE NOTICE OF DEMAND AND DETENTION ORDER ISSUED BY THE 2ND RESPONDENT DATED 05.10.2005. EXT.P3: TRUE COPY OF THE ORDER DATED 08.04.2005 IN W.P.(C) 12110/2005 PASSED BY THIS HON'BLE COURT. RESPONDENTS' EXHIBITS: NIL TRUE COPY P.A. TO JUDGE. K.VINOD CHANDRAN,J. --------------------------------------- W.P.(C). No. 28535 of 2005 ---------------------------------------- Dated this the 6th day of December, 2011 JUDGMENT The above writ petition has been filed by the petitioner against the detention of the petitioner's machinery based on a demand of entry tax under the provisions of Kerala Tax on Entry of Goods into Local Areas Act, 1994. At the time of filing of the writ petition this Court had granted an interim order directing the release of goods on condition of payment of one-half of demand and on executing a bond without surety for the balance amounts. Govt. Pleader submits on instructions that the release of goods have been effected as per the directions issued by this Court. It is also submitted that the levy of entry tax on goods imported from other states to the State of Kerala has been held to be unconstitutional and the demand and collection of entry tax under the Kerala Tax on Entry of Goods into Local Areas Act, 1994 has been held to be illegal, unauthorised and unconstitutional under Article 301 of the Constitution of India by W.P.C.. No. 28535 of 2005 -2- a Division Bench of this Court in the case reported in 2007(1) KLT 303 Thressiamma L. Chirayil V. State of Kerala. It is also submitted on behalf of the State that the said judgment is pending in special leave before the Supreme Court. However, admittedly the Supreme Court has not granted any stay of the judgment of the Division Bench. In this circumstance, following the judgment of this Hon'ble Court noticed supra, I allow the writ petition holding the demand of entry tax to be unconstitutional. However, it is also submitted that in a batch of petitions filed for refund of entry tax another Division Bench of this Court has suo moto adjourned the case awaiting the result of the SLPs filed before the Supreme Court. In this circumstance the writ petition is allowed on condition that the petitioner as also the State shall abide by the orders of the Supreme Court in the SLPs filed before the Supreme Court. K.VINOD CHANDRAN, JUDGE. Kp/-