Petitioner is challenging demand of cash security for rupees five lakhs for granting registration under the Kerala Value Added Tax Act and CST Act in Kerala. In the counter affidavit, 1st respondent has stated that having regard to the limited facilities available to the petitioner, such as office space, go-down space etc., petitioner should be compelled to furnish substantial security. I feel, as a trial, petitioner can be granted registration for a limited period on furnishing security for a lesser amount. This writ petition is, accordingly, disposed of directing 1st respondent to grant registration to the petitioner till 31/03/2008 on petitioner furnishing cash security for Rs. 1 lakh and along with it, on furnishing a bond jointly executed by petitioner and joint owner of 19 cents of land and on depositing title deed of the said property creating charge over it for tax liability without mentioning any amount. The Assessing Officer will verify petitioner’s returns and payment of tax and will conduct enquiry about his business transactions and if it is found that petitioner conducts any fraud or evasion of tax, the registration granted can be cancelled or otherwise it should be renewed.
