IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.T.RAVIKUMAR TUESDAY, THE 11TH MAY 2010 / 21ST VAISAKHA 1932 WP(C).No. 14501 of 2010(K) -------------------------- PETITIONER(S): --------------- MADURAI TUTICORIN EXPRESSWAYS LTD., TUTICORIN ROAD PROJECTS, CAMP AT KM 216, SINTHALAKARI, ETTAVAPURAM, PIN-628902, TUTICORIN DISTRICT, TAMILNADU, REPRESENTED BY ITS MANAGER OPERATIONS, K.VENUGOPAL. BY ADV. SRI.R.MURALEEDHARAN RESPONDENT(S): --------------- 1. THE INSPECTING ASSISTANT COMMISSIONER COMMERCIAL TAX CHECK POST, AMARAVILA. 2. M/S.METRO INFRASYS (P) LTD., B-92, MAYAPURI INDUSTRIAL AREA,PHASE-I, NEW DELHI - 110064. GOVT.PLEADER (TAXES) SRI.K.P.PRADEEP- R1 THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 11/05/2010, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: C.T. RAVIKUMAR, J. -------------------------------------------- W.P.(C). NO. 14501 OF 2010 -------------------------------------------- Dated this the 11th day of May, 2010 JUDGMENT The petitioner is a contractor. According to him, to make use of in the works for Madurai-Tuticorin Express Highway Project under the National Highway Authority of India, he had placed purchase orders for some automation machineries, spares and accessories (Electrical goods). The three letter destination code 'CJB' denoting Coimbatore was wrongly marked on the consignment as 'COK', which actually stands for Kochi. This, according to the petitioner, is nothing but an inadvertant error crept in, on account of the inexperience of the staff and as a result the goods happened to move through the State of Kerala without unloading it at Coimbatore when the particular vehicle ran through Kerala to deliver goods in various other destinations in Kerala. When the vehicle carrying the said code reached the exist check post ie., Commercial Tax Check Post, Amaravila, it was intercepted. It was found that no transit pass as provided under Section 48 of the Kerala Value Added Tax Act was taken for transit of the said goods. Therefore, the goods and the vehicle were detained and the first respondent demanded an amount of Rs.2,58,060/- as W.P.(C) NO.14501/2010 2 security deposit to the release of the goods as per Ext.P4. It is challenging Ext.P4 that this Writ Petition has been filed. 2. According to the petitioner, Ext.P1 invoice and Ext.P2 delivery chalan would go to show that the consignment was bound for Coimbatore and they were not unloaded in Coimbatore only on account of the wrong denoting of the three letter code 'COK' instead of 'CJB'. Be that as it may, it is a fact that no transit pass was taken as provided under Section 48 of the Kerala Value Added Tax Act for the transit of the goods. According to the petitioner, it is an omission on account of the lorry driver who drove the vehicle in question. According to the respondents, it is nothing but an attempt to evade tax. 3. Indisputaby, the goods in question are transited through the State of Kerala. That apart, transit pass required under Section 48 of the Kerala Value Added Tax Act was not taken by the driver while transiting the consignment. Therefore, prima facie, no illegality can be attributed for the action on the part of the respondents in issuing Ext.P4. It is up to the petitioner to convince the authorities regarding the verity of his W.P.(C) NO.14501/2010 3 contentions. 4. The learned counsel for the petitioner submits that the petitioner is prepared to furnish bank guarantee for the amount demanded as per Ext.P4 viz., R.2,58,060/-. Therefore, without making any observation regarding the merits of the contentions, this Writ Petition is disposed of with liberty to the petitioner to furnish bank guarantee equal to the amount demanded as per Ext.P4 before the first respondent. The first respondent shall accept the same, in case it is furnished, and release the goods and the concerned vehicle in accordance with the prescribed procedures. There shall also be a direction to the appropriate authority to complete the proceedings initiated against the petitioner under Section 47 (2) of the Kerala Value Added Tax Act in respect of the transit in question, within a period of one month from today. (C.T. RAVIKUMAR, JUDGE) spc W.P.(C) NO.14501/2010 4 C.T. RAVIKUMAR, J. W.P.(C). NO.14501/2010 JUDGMENT 11th May, 2010 W.P.(C) NO.14501/2010 5