{"id":227545,"date":"2010-03-22T00:00:00","date_gmt":"2010-03-21T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/quilon-merchant-chamber-of-vs-state-of-kerala-on-22-march-2010"},"modified":"2016-08-06T13:35:23","modified_gmt":"2016-08-06T08:05:23","slug":"quilon-merchant-chamber-of-vs-state-of-kerala-on-22-march-2010","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/quilon-merchant-chamber-of-vs-state-of-kerala-on-22-march-2010","title":{"rendered":"Quilon Merchant Chamber Of &#8230; vs State Of Kerala on 22 March, 2010"},"content":{"rendered":"<div class=\"docsource_main\">Kerala High Court<\/div>\n<div class=\"doc_title\">Quilon Merchant Chamber Of &#8230; vs State Of Kerala on 22 March, 2010<\/div>\n<pre>       \n\n  \n\n  \n\n \n \n  IN THE HIGH COURT OF KERALA AT ERNAKULAM\n\nWP(C).No. 30008 of 2007(V)\n\n\n1. QUILON MERCHANT CHAMBER OF COMMERCE\n                      ...  Petitioner\n2. P. NARAYANA SWAMI,\n\n                        Vs\n\n\n\n1. STATE OF KERALA\n                       ...       Respondent\n\n2. THE COMMISSIONER OF COMMERCIAL TAXES\n\n                For Petitioner  :SRI.R.SATISH KUMAR\n\n                For Respondent  :GOVERNMENT PLEADER\n\nThe Hon'ble MR. Justice THOTTATHIL B.RADHAKRISHNAN\n\n Dated :22\/03\/2010\n\n O R D E R\n<\/pre>\n<p>          THOTTATHIL B.RADHAKRISHNAN, J.\n<\/p>\n<p>  = = = = = = = = = = = = = = = = = = = = = = = =<\/p>\n<p>            W.P.(C).No.30008 of 2007-V<\/p>\n<p>  = = = = = = = = = = = = = = = = = = = = = = = =<\/p>\n<p>       Dated this the 22nd day of March, 2010.<\/p>\n<p>                     Judgment<\/p>\n<p>1.Second petitioner is the Vice President of the<\/p>\n<p> first   petitioner  Quilon   Merchant  Chamber  of<\/p>\n<p> Commerce.   They   filed    this   writ    petition<\/p>\n<p> challenging clause 10 of Ext.P2 circular issued<\/p>\n<p> by the Commissioner of Commercial Taxes under the<\/p>\n<p> provisions of the KVAT Act. The impugned clause<\/p>\n<p> provides   that  if  the    purchasing  dealer  is<\/p>\n<p> untraceable at the given address, then action<\/p>\n<p> shall be taken against the selling dealer under<\/p>\n<p> Sections 67 and 73 of KVAT Act. The said clause<\/p>\n<p> follows the earlier provisions which are intended<\/p>\n<p> to identify the transit of goods to ensure that<\/p>\n<p> there is no escape from the tax net.<\/p>\n<p>2.The petitioners have a well founded apprehension<\/p>\n<p> that the impugned clause 10 of Ext.P2 circular<\/p>\n<p> could be misused even in bona fide cases and in<\/p>\n<p><span class=\"hidden_text\">WPC30008\/07            -: 2 :-<\/span><\/p>\n<p> all cases, the selling dealer is likely to be put<\/p>\n<p> to undue harassment. It appears that this plea of<\/p>\n<p> the trading community has obtained the attention<\/p>\n<p> of   the   Department  and    accordingly, Circular<\/p>\n<p> No.46\/07    has   been   issued   modifying  Ext.P2<\/p>\n<p> circular clarifying that action shall be taken<\/p>\n<p> against the selling dealer in terms of clause 10<\/p>\n<p> of Ext.P2 circular only where fraud and collusion<\/p>\n<p> between the selling dealer and the purchasing<\/p>\n<p> dealer in the transaction is proved. Obviously,<\/p>\n<p> therefore, the apprehension of the petitioners<\/p>\n<p> stands    answered  by   the  Department  in  their<\/p>\n<p> favour. This is recorded and it is ordered that<\/p>\n<p> Ext.P2    will  be  operated    only  in  terms of<\/p>\n<p> clarifications contained in Circular No.46\/07.<\/p>\n<p>3.In so far as the other reliefs sought for in the<\/p>\n<p> writ petition are concerned, the statute requires<\/p>\n<p> all retail dealers in the State to be registered<\/p>\n<p> under the KVAT Act within a time frame fixed and<\/p>\n<p> that the registered retail dealers be issued with<\/p>\n<p> electronic identity cards. The requirement to get<\/p>\n<p><span class=\"hidden_text\">WPC30008\/07            -: 3 :-<\/span><\/p>\n<p> registered is a statutory requirement. To obtain<\/p>\n<p> such    registration being    a  mandate,  the KVAT<\/p>\n<p> authorities   can   only    fix liability  for non-<\/p>\n<p> registration. The manner of obtaining compulsory<\/p>\n<p> registration is by providing teeth in the form of<\/p>\n<p> penalty     against    the     non-registration  of<\/p>\n<p> compulsorily registrable dealerships. Issuance of<\/p>\n<p> electronic identity cards is a matter which has<\/p>\n<p> to be taken up in the most expeditious manner.<\/p>\n<p> In so far as the request of the petitioners that<\/p>\n<p> circulars under the KVAT Act are to be issued in<\/p>\n<p> Malayalam    language   also    is  concerned,  the<\/p>\n<p> Commissioner will look into whether there is a<\/p>\n<p> statute which makes mandate in that regard and if<\/p>\n<p> so, will take necessary action to comply with<\/p>\n<p> such statutory provision. The writ petition is<\/p>\n<p> ordered accordingly.\n<\/p>\n<\/p>\n<p>                         THOTTATHIL B.RADHAKRISHNAN,<br \/>\n                                     JUDGE.\n<\/p>\n<p>Sha\/2303<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Kerala High Court Quilon Merchant Chamber Of &#8230; vs State Of Kerala on 22 March, 2010 IN THE HIGH COURT OF KERALA AT ERNAKULAM WP(C).No. 30008 of 2007(V) 1. QUILON MERCHANT CHAMBER OF COMMERCE &#8230; Petitioner 2. P. NARAYANA SWAMI, Vs 1. STATE OF KERALA &#8230; Respondent 2. THE COMMISSIONER OF COMMERCIAL TAXES For Petitioner [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[8,21],"tags":[],"class_list":["post-227545","post","type-post","status-publish","format-standard","hentry","category-high-court","category-kerala-high-court"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Quilon Merchant Chamber Of ... vs State Of Kerala on 22 March, 2010 - Free Judgements of Supreme Court &amp; High Court | Legal India<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legalindia.com\/judgments\/quilon-merchant-chamber-of-vs-state-of-kerala-on-22-march-2010\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Quilon Merchant Chamber Of ... vs State Of Kerala on 22 March, 2010 - Free Judgements of Supreme Court &amp; 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