IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE S.SIRI JAGAN WEDNESDAY, THE 17TH AUGUST 2011 / 26TH SRAVANA 1933 WP(C).No. 22256 of 2011(F) -------------------------------------- PETITIONER: ------------------- TRANS GLOBAL INLAND CONTAINER SERVICES PVT.LTD., P.B.NO.4501, VEEKAY TOWER, TAB ROAD, COCHIN-682 018. REPRESENTED BY ITS AUTHORIZED SIGNATORY-RAMESH MENON. BY ADVS. SRI.V.V.ASOKAN, SRI. K.I. MAYANKUTTY MATHER, SRI. R. JAIKRISHNA. RESPONDENTS: ------------------------ 1. INTELLIGENCE INSPECTOR, COMMERCIAL TAX CHECK POST, WALAYAR-678 624. 2. INSPECTING ASSISTANT COMMISSIONER (INTELLIGENCE), COMMERCIAL TAX CHECK POST, WALAYAR-678 624. R1 & R2 BY GOVT. PLEADER SRI. C.K. GOVINDAN. THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 17/08/2011,THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: W.P.(C). NO.22256/2011-F: APPENDIX PETITIONERS' EXHIBITS: EXT.P.1: COPY OF THE APPROVAL GIVEN BY THE MINISTRY OF COMMERCE AND INDUSTRY, DEPARTMENT OF COMMERCE, UDYOG BHAVAN, NEW DELHI TO THE PETITIONER DTD. 23/03/2010. EXT.P.2: COPY OF THE QUOTATION GIVEN BY CARGOTEC INDIA PVT. LTD., BANGALORE DTD. 11/01/2011. EXT.P.3: COPY OF THE PURCHASE ORDER DTD. 27/01/2011. EXT.P.4: COPY OF THE BROCHURE DISCLOSING THE NATURE OF REACH STACKER DTD. NIL. EXT.P.5: COPY OF THE RECEIPT ISSUED BY THE CARGOTEC INDIA PVT. LTD. DTD. 27/01/2011. EXT.P.6: COPY OF THE INVOICE ISSUED BY THE CARGOTEC INDIA PVT. LTD. DTD. 14/07/11. EXT.P.6.A: COPY OF THE RECEIPT ISSUED BY CARGOTEC INDIA PVT. LTD., DTD. 25/07/2011. EXT.P.7: COPY OF THE NOTICE GIVEN BY THE R.1. UNDER SECTION 47(2) OF THE KVAT ACT DTD. 10/08/2011. EXT.P.8: COPY OF THE FORM-16 CERTIFICATE OF OWNERSHIP DTD. 16/07/2011. EXT.P.9: COPY OF THE NOTICE GIVEN BY THE R.1. UNDER SECTION 47(2) OF THE KVAT ACT DTD. 11/08/2011. RESPONDENTS' EXHIBITS: NIL. //TRUE COPY// P.A. TO JUDGE. Prv. S.SIRI JAGAN, J. ================== W.P.(C).No. 22256 of 2011 ================== Dated this the 17th day of August, 2011 J U D G M E N T A machinery transported by the petitioner for installation in their premises has been detained by the 1st respondent under cover of Exts.P7 and P9 notices alleging attempt to evade tax. The petitioner submits that there is no attempt to evade tax at all even going by the notices, wherein the suspicion is that works contract are involved in assembling and installing machinery at the premises of the petitioner. If that be so, no element of sales tax on the purchase of the machinery is involved, but only sales tax on the element of works contract is involved. What is demanded in the notices is the sales tax element in respect of the value of the machinery, which is unsustainable is the contention raised. The petitioner seeks release of the goods and the vehicles unconditionally. 2. I have heard the learned Government Pleader also, who fiercely opposes the prayer. According to him, the petitioner is not a registered dealer and, therefore, without sufficient security for the amounts covered by Exts.P7 and P9, the machinery cannot be released. 3. I have considered the rival contentions in detail. 4. I am of opinion that the machinery and the vehicles, in w.p.c.22256/11 2 which the same are being transported, should be released to the petitioner on the petitioner furnishing a bank guarantee for ` 10 lakhs and a simple bond without sureties for the balance amount covered by Exts.P7 and P9 notices. This shall be done immediately on the petitioner furnishing bank guarantee for ` 10 lakhs and furnishing bond for the balance amount. The appropriate authority under the Act shall complete proceedings pursuant to Exts.P7 and P9 notices, as expeditiously as possible, at any rate, within two months from the date of receipt of a certified copy of this judgment. The security furnished shall be dealt with in accordance with the orders to be passed. The petitioner shall not transfer the machinery to anybody until final orders are passed. The writ petition is disposed of as above. Sd/- sdk+ S.SIRI JAGAN, JUDGE ///True copy/// P.A. to Judge