IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE P.R.RAMACHANDRA MENON FRIDAY, THE 30TH JULY 2010 / 8TH SRAVANA 1932 WP(C).No. 23652 of 2010(F) ---------------------------------------- PETITIONER(S): -------------------------- M/S.HARITHA MINERALS & BEVERAGES, III/275, VARANDRAPPILLY P.O., THRISSUR-680 303, REPRESENTED BY ITS MANAGING PARTNER, KOCHUMON K.S. BY ADV. SRI.TOMSON T.EMMANUEL RESPONDENT(S): ---------------------------- 1. THE COMMERCIAL TAX INSPECTOR, COMMERCIAL TAXES CHECK POST, WALAYAR, PALAKKAD-682 024. 2. THE COMMERCIAL TAX OFFICER (ON DUTY), COMMERCIAL TAX CHECK POST, WALAYAR, PALAKKAD-682 024. R1 &R2 BY GOVERNMENT PLEADER SRI. SHAMSUDDIN THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 30/07/2010, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: Kss P.R.RAMACHANDRA MENON, J. --------------------------- W.P.(C) No. 23652 OF 2010 -------------------------- Dated this the 30th day of July, 2010 J U D G M E N T The petitioner, a firm who is proposing to set up a plant for manufacture and sale of packaged drinking water in Varandarappilly Grama Panchayat in Thrissur District, on the strength of Ext.P2 provisional sanction issued by the concerned Grama Panchayat took steps to set up the Plant. After providing the necessary infrastructure in conformity with the prescriptions of the State Pollution Control Board, the petitioner gave necessary instructions to the consignor to despatch the 'plant and machinery', so as to have it erected and to proceed with further steps. It is also the case of the petitioner that the petitioner has forwarded necessary 'form 16' to support the said consignment. However before receipt of form 16, the consignor despatched the items which were intercepted by issuing Ext.P5 notice dated 25.7.2010 by the concerned respondent, doubting evasion of tax and demanding security deposit to the extent of Rs.2,12,831/-. 2. Learned counsel for the petitioner submits that the course pursued by the respondents is not correct or sustainable and WPC No.23652/2010 2 that the petitioner is very much entitled to have the unit set up, on the basis of the requisite sanction and licence to be obtained and particularly as resolved by the Panchayat vide Ext.P2. It is only after setting up the unit that the petitioner can start the business and there is much time as contemplated under the provisions of law to obtain registration under the provisions of KVAT Act. There is a further case for the petitioner that the particular item, that has been sought to be transported by the petitioner, comes under Section 83 of Third schedule (Plant and Machinery) wherein the tax liability is only @ 4%. This being the position, the amount demanded by the respondent in Ext.P5 is more than four times of the legally sustainable liability, even if it is held as sustainable otherwise; submits the learned counsel. 3. Heard the learned Government Pleader as well. 4. Considering the particular facts and circumstances, the petitioner is directed to deposit a sum of Rs.50,000/-; the appropriation of which will be subject to the finalisation of the adjudication proceedings. On satisfying the said amount, simultaneously executing the undertaking to take out registration in WPC No.23652/2010 3 the form of an affidavit (with reference to the contents of para 1 of Ext.P6) and a 'simple bond' for the balance amount covered by Ext.P5, the vehicle and goods covered by Ext.P5 shall be released to the petitioner forthwith. This will be without prejudice to the right and liberties of the respondents to pursue the adjudication proceedings; which shall be finalised in accordance with law, as expeditiously as possible, at any rate within two months from the date of receipt of a copy of this judgment. The writ petition is disposed of. P.R.RAMACHANDRA MENON (JUDGE) vps WPC No.23652/2010 4 WPC No.23652/2010 5