1. The petitioner, in the writ petitions, a native of Maharashtra, is running a gold re-cycling unit within the State of Kerala, in Kochi. The subject matter of the above writ petition is the seizure of 6280 grams of gold from the business premises of the petitioner, by the Shadow Unit of the Kochi City Police and the proceedings initiated by the Income Tax Department as also the Commercial Taxes Department of the State, for assessment, deeming such possession to be for the purpose of sale within the State, thus attracting levy under the Income Tax Act, 1961 as also the Kerala Value Added Tax Act, 2003.

2. On facts; suffice it to say that, on 15.01.2010, the shadow unit of the Kochi City Police conducted a raid in the business premises of the petitioner, on alleged information, of gold being possessed illegally by the petitioner. According to the petitioner, the raid commenced at 4.00 p.m. on 15.01.2010. But the mahazar prepared, evidenced by Ext.P5 is dated 16.1.2010. This Court is not concerned with the procedure adopted or the validity of the same. At this point of time, the issue to be focussed upon is, the release of the gold, which admittedly, the Income Tax Department has found to be not owned by the petitioner. Ext.P5 mahazar is to be looked into, only to ascertain the exact quantity of the gold seized from the petitioner and the nature of the same.

3. Admittedly, 6280 grams of gold was seized of which 3000 grams were pure gold bars, along with an amount of Rs.2,05,500/- from the business premises. The cash so seized was subsequently adjusted towards the income tax dues, determined on re-opening of assessments for various years; pursuant to the seizure effected. Immediately after the seizure, the gold was handed over to the Income Tax Department, who issued Ext.P14 and P16 notices to the petitioner. The petitioner filed Ext.P17, in reply to such notices, taking the contention, at the first instance, that the petitioner was not a dealer or trader in gold or gold ornaments.

4. The petitioner asserted that, the petitioner was engaged only in the purification of gold and gold ornaments, on contract with the dealers in gold ornaments, within and outside Kochi. The petitioner also specifically accounted the quantity, seized from the petitioner's premises, by Ext.P7 to P13 vouchers issued by various registered dealers in gold and gold ornaments, within the State of Kerala. Exts.P7 to P13 are vouchers evidencing issuance of gold and gold jewelery to the petitioner, for conversion purposes. In fact, the pure gold bars coming to 3000 grams were issued by one dealer, by name Alapat Gold, who had purchased the same on various dates from the Bank of Nova Scotia. Ext.P13 and P13(a) are receipts issued in lieu of the purchase of bullion made by the Alapat Gold Den (P) Ltd. The gold bars are identified by the numbers, given in such official receipts, which according to the petitioner is clearly printed in the bars.

5. The dealers who issued Ext.P7 to P13 vouchers supported the case of the petitioner and admitted, before the authorities that the gold seized from the premises of the petitioner, belongs to them. The petitioner was entrusted with the same for distillation and conversion even according to such dealers. Petitioner hence approached the Income Tax Department, with an application under section 132B of the Act, for an expeditious conclusion of the proceedings.

6. The petitioner was anxious for the release of the gold, which, admittedly, belonged to other dealers and was entrusted to him for distillation purposes. While so, the Commercial Taxes Department also issued Ext.P20 notice, alleging suppression of sales and threatening penalty for attempt to evade tax at double the tax, so sought to be evaded. The tax evasion was computed on the basis of the exact quantity of the gold seized by the Police and handed over to the Income Tax department. The petitioner approached this Court with a specific prayer for release of t