IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE P.R.RAMACHANDRA MENON FRIDAY, THE 30TH JULY 2010 / 8TH SRAVANA 1932 WP(C).No. 23713 of 2010(L) -------------------------- PETITIONER: --------------- M/S. JOY ALUKKAS TRADERS (INDIA) PVT.LTD NARINE DRIVE, ERNAKULAM, KOCHI-31, REPRESENTED BY DEEPAK XAVIER, FINANCE MANAGER. BY ADV. SRI.HARISANKAR V. MENON SMT.MEERA V.MENON SRI.MAHESH V.MENON RESPONDENTS: --------------- 1. ASST. COMMISSIONR (KVAT), COMMERCIAL TAXES SPECIAL CIRCLE - I, ERNAKULAM 682013. 2. COMMERCIAL TAX INSPECTOR, COMMERCIAL TAX CHECK POST, WALAYAR 678624. BY GOVT. PLEADER SRI. SHAMSUDDIN THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 30/07/2010, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: P.R.RAMACHANDRA MENON, J. --------------------------- W.P.(C) No. 23713 OF 2010 -------------------------- Dated this the 30th day of July, 2010 J U D G M E N T The petitioner is stated as aggrieved of Ext.P1 notice issued under Section 47(2) of the KVAT Act, in respect of the transport of materials covered by Ext.P2, doubting evasion of tax and demanding security deposit to the extent as specified therein. 2. The case of the petitioner is that, petitioner is one of the major revenue contributors in the State, whose contribution has been recognized at different levels in the State. In connection with the business promotion, the petitioner transported various items such as 'clocks, flasks, casseroles' etc., as given in Ext.P2 delivery note and also as described in Ext.P3 certificate of ownership in form 16. While the above goods were transported in the vehicle No.KL 01Y 2361, it was intercepted on 24.7.2010 issuing Ext.P4 notice, which is challenged in the writ petition. 3. Learned counel for the petitioner submits that reasons given in Ext.P4 do not have any legal or factual footing and are rather self-contradictory, which has been sought to be explained by the petitioner by filing Ext.P5 reply. Still, the same has been simply WPC No.23713/2010 2 given a 'go-bye' and the detention continues, which made the petitioner to approach this Court. 4. The learned Government Pleader appearing for the respondents submits with reference to the materials on record and on instructions obtained, that the action pursued by the respondents is perfectly within the four walls of the law in view of the discrepancies in the documents which accompanied the transport. 5. Going by the materials on record, the insinuating circumstance mentioned in Ext.P4 is that, whether the consignee is a registered dealer or not, is not discernible. It is also stated that the goods transported are 'clocks, flasks, casseroles' etc., whereas the items mentioned in the supporting documents were only some packing materials. 6. On going through the very same materials on record, beneath the entry given as 'packing materials', the petitioner has clearly described the nature of goods as 'clocks, flasks, casseroles' etc., which unfortunately escaped the notice of the concerned respondent while issuing Ext.P4. This being the position, there is considerable force in the submissions made by the learned counsel for the petitioner, more so since the concerned respondent himself WPC No.23713/2010 3 has observed in Ext.P4 that the items are actually intended for 'business promotion'. 7. In the above circumstances, this Court finds that items brought by the petitioner prima facie, are more for the purpose of 'business promotion' even as conceded from the part of the respondent; which however is a matter which requires proper adjudication. But, for that reason, the goods need not be detained and it shall be released to the petitioner forthwith, on executing a 'simple bond' by the authorised signatory of the petitioner company. It is made clear that this will be without prejudice to the right of the respondents to pursue the adjudication proceedings, which shall be finalised in accordance with law, as expeditiously as possible, at any rate within two months from the date of receipt of a copy of this judgment. The writ petition is disposed of as above. P.R.RAMACHANDRA MENON (JUDGE) vps WPC No.23713/2010 4 WPC No.23713/2010 5