IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HON'BLE THE ACTING CHIEF JUSTICE MR.C.N.RAMACHANDRAN NAIR & THE HONOURABLE MR. JUSTICE P.S.GOPINATHAN THURSDAY, THE 3RD NOVEMBER 2011 / 12TH KARTHIKA 1933 WA.No. 1654 of 2011() --------------------- AGAINST THE JUDGEMENT/ORDER IN WPC.28944/2011 Dated 31/10/2011 .................... APPELLANT(S): / PETITIONER -------------- M/S.TMT GRANITES (P) LTD., IX/302, MAIN ROAD, MANGALAMDAM.P.O., PALAKKAD DISTRICT, REPRESENTED BY TOM GEORGE, MANAGING DIRECTOR. BY ADV. SRI.HARISANKAR V. MENON SMT.MEERA V.MENON RESPONDENT(S): / RESPONDENTS --------------- 1. COMMERCIAL TAX OFFICER, ALATHUR, PIN - 678 541. 2. INTELLIGENCE INSPECTOR, SQUAD NO.IV, DEPARTMENT OF COMMERCIAL TAXES, MATTANCHERRY AT MINI CIVIL STATION, ALUVA, PIN - 682 024. 3. INTELLIGENCE INSPECTOR, SQUAD NO.IV, DEPARTMENT OF COMMERCIAL TAXES, EDAPPALLY, KOCHI - 24. BY SPL.GOVERNMENT PLEADER, MR.BOBY JOHN THIS WRIT APPEAL HAVING COME UP FOR ADMISSION ON 03/11/2011, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: C.N.RAMACHANDRAN NAIR, Ag.CJ. & P.S.GOPINATHAN, J. .................................................................... W.A. No.1654 of 2011 .................................................................... Dated this the 3rd day of November, 2011. J U D G M E N T Ramachandran Nair, Ag.CJ. This Writ Appeal is filed against the judgment of the learned Single Judge directing release of goods on depositing 50% of the security amount towards cash and 50% towards simple bond without surety. The appellant's case is that they are registered dealer under the KVAT Act and the item brought is plant & machinery for crushing rubble to make stone chips. Learned Government Pleader submitted that form 16 accompanied the goods was defective though the appellant is a registered dealer. 2. We find force in the contention of the appellant that there cannot be evasion of tax in respect of plant & machinery purchased from outside Kerala which is for use in the manufacture of goods. However, the question as to whether there is liability for works contract in respect of setting up of the plant is a matter which calls for examination at the time of enquiry. However, having regard to the fact that the goods are W.A.No.1654/2011 2 plant & machinery brought for use as such, we allow the Writ Appeal by modifying the judgment of the learned Single Judge as follows:- There will be direction to respondents 2 & 3 to release goods on the appellant furnishing simple bond without surety for the security amount along with it a copy of the certificate of registration certified as true copy by the Assessing Officer before whom the appellant is registered. 3. Adjudication should be completed after hearing the appellant and after conducting enquiry within a period of three months from date of production of a copy of this judgment. It will be open to the Enquiry Officer to call for a report from the Assessing Officer about the manufacture and sale of goods and the payment of tax by the appellant. This Writ Appeal is disposed of as above. Issue photocopy today itself. (C.N.RAMACHANDRAN NAIR, ACTING CHIEF JUSTICE) (P.S.GOPINATHAN, JUDGE) jg