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2008 (8) TMI 804 - KERALA HIGH COURTConstitutionality of section 26 of the VAT Act challenged - Held that:- The challenge to the validity of section 26 of the VAT Act deserves to be repelled. The reasons, which have been given by the second respondent, both in the notices as also in the impugned orders as "reasons to believe" that the petitioner was associated in the business of her son, are really irrelevant and have no bearing on the matters in regard to which "he is required to entertain a belief" for the purpose of section 26 of the VAT Act. The exercise of power which led to exhibits P-12 and P-13, in the circumstances, is capable of being branded as an arbitrary exercise, violative of article 14 of the Constitution of India. The petitioner is entitled to succeed, insofar as the challenge against exhibits P-12 and P-13 orders is concerned. The writ petition is, therefore, allowed in part. Exhibits P-12 and P-13 are quashed. But, it is made clear that it is open to the second respondent to issue fresh notices under section 26 of the VAT Act, provided there are "reasons to believe" that the petitioner had also carried on business in association with her son Biju Anirudhan and participated in the business of M/s. Anjaneya Motors, stated to be owned by Sri Biju Anirudhan.
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