IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE S.SIRI JAGAN WEDNESDAY, THE 28TH SEPTEMBER 2011 / 6TH ASWINA 1933 WP(C).No. 25850 of 2011(E) --------------------------------------- PETITIONER(S): ---------------------- NOEL JOSEPH FULLER, (PROPRIETOR FILA TRANSPORTS), AGED 46 YEARS, S/O.B. FULLER, FILA HOUSE, CHAKKUNGAL ROAD, PALARIVATTOM, COCHIN-682 025. BY ADV. SRI.M.A.ABDUL HAKHIM RESPONDENT(S): -------------------------- 1. INTELLIGENCE INSPECTOR, COMMERCIAL TAXES, ALAPPUZHA, PIN-688 001. 2. MAGMA FINCORP LIMITED, 24 PARK STREET, KOLKATA-700 016. HAVING BRANCH OFFICE AT JAIN TOWERS, OPP. KSEB, N.H. BYEPASS, VYTTILA, COCHIN, PIN-682 019. R1 BY GOVT. PLEADER MR.SHAMSUDHEEN V.K. THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 28/09/2011,THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: rs WP(C).No. 25850 of 2011(E) APPENDIX PETITIONER'S EXHIBITS: EXT.P1: COPY OF THE INVOICE. EXT.P2: COPY OF THE SALE AGREEMENT IN FAVOUR OF THE PETITIONER. EXT.P3: COPY OF THE CASH RECEIPT ISSUED TO THE PETITIONER. EXT.P4: COPY OF THE RELEASE LETTER IN FAVOUR OF THE PETITIONER. EXT.P5: COPY OF THE NOTICE ISSUED BY THE 1ST RESPONDENT UNDER SEC.47 (2) OF THE KVAT ACT. RESPONDENT'S EXHIBITS:- NIL. //TRUE COPY// P.A. TO JUDGE rs S. SIRI JAGAN, J. ------------------------------------------- W.P.(C) No. 25850 OF 2011 ---------------------------------------------- Dated this the 28th day of September, 2011 JUDGMENT A second hand Earth Remover, which was purchased in 2010, on being transported by the petitioner to one of his work sites for execution of a contract, was detained by the 1st respondent, by issuing Ext.P5 demanding cash security for the amount covered by Ext.P5 on allegations of attempt to evade tax. According to the petitioner, the Earth Remover is of 2004 make and if at all the petitioner is liable to pay tax, it is only for the second sale at the rate of 0.5% of the sale price of Rs.8,05,000/-, which would come to only Rs.4,025/-. The petitioner submits that there is absolutely no reason for suspecting evasion of tax. The petitioner seeks release of the Earth Remover and the vehicle. 2. This is opposed by the learned Government Pleader. According to him, sufficient reasons are mentioned in Ext.P5 for suspecting evasion of tax. 3. Having heard both sides, this writ petition is disposed W.P.(C)No.25850/11 2 of with the following directions: The Earth Remover and the vehicle in which it is being transported shall be released to the petitioner on the petitioner depositing an amount of Rs.10,000/- (Rupees ten thousand only) and furnishing a bond for the balance amount covered by Ext.P5. The appropriate authority under the Act shall complete proceedings pursuant to Ext.P5, 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. Until the proceedings are completed, the petitioner shall not alienate or otherwise part with possession of the Earth Remover and the vehicle and shall produce the same as and when the appropriate authority so directs, if necessary, for further proceedings. S. SIRI JAGAN, JUDGE acd W.P.(C)No.25850/11 3 W.P.(C)No.25850/11 4