IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE S.SIRI JAGAN MONDAY, THE 5TH SEPTEMBER 2011 / 14TH BHADRA 1933 WP(C).No. 24197 of 2011(Y) ------------------------------------- PETITIONER(S): ------------------------ M/S.INNOVATIVE FOODS LIMITED REGISTERED OFFICE AT A1C, CHAKOLAS HABITAT, THEVARA FERRY ROAD, COCHIN 682 013, REPRESENTED BY ITS DIRECTOR P.MANOJ KUMAR. BY ADV. SRI.E.K.NANDAKUMAR SRI.K.JOHN MATHAI SRI.P.BENNY THOMAS SRI.P.GOPINATH DR.K.P.PRADEEP SRI.KURYAN THOMAS RESPONDENT(S): ------------------------- 1. THE STATE OF KERALA, REPRESENTED BY SECRETARY TO GOVERNMENT (TAXES),GOVERNMENT OF KERALA, SECRETARIAT, THIRUVANANTHAPURAM 695 001. 2. COMMERCIAL TAX OFFICER (VAT), 2ND CIRCLE, MATTANCHERY, DEPARTMENT OF COMMERCIAL TAXES , ERNAKULAM 682 002. 3. INTELLIGENCE INSPECTOR, SQUAD NO. IV O/O. THE DEPUTY COMMISSIONER (INTELLIGENCE) DEPARTMENT OF COMMERCIAL TAXES EDAPALLY, KOCHI ERNAKULAM 682 024. BY GOVT. PLEADER SRI.C.J.GOVINDAN THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 05/09/2011, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: tss W.P.(C) NO.24197/2011 APPENDIX PETITIONER'S EXHIBITS P1:- COPY OF THE REGISTRATION CERTIFICATE TIN 32150699594 DTD. 28.6.2007 ISSUED UNDER KVAT ACT, 2003 BY THE 2ND RESPONDENT TO THE PETITIONER. P2:- COPY OF THE SALE INVOICE NO.EXP 0380 DTD. 16.7.2011 ISSUED BY M/S. NEWLY WEDS FOODS (BEIJING) CO. LTD. TO THE PETITIONER. P3:- COPY OF THE BILL OF LADING NO.11008682419 DTD. 8.7.2011 ISSUED BY M/S. MOL MITSUI OSK LINES LTD., CHINA TO THE PETITIONER . P4:- COPY OF THE BILL OF ENTRY FOR HOME CONSUMPTION NO.4378620 DTD. 17.8.2011 ISSUED FROM COCHIN CUSTOMS HOUSE, WILLINGTON ISLAND, COCHIN TO THE PETITIONER. P5:- COPY OF THE TR 6 CHALLAN NO. 2001798421 DTD. 19.8.2011. P6:- COPY OF THE DELIVERY NOTE NO.CTVAG-C 0846215 DTD. 3.9.2011 ISSUED IN FORM NO. 15 BY THE 2ND RESPONDENT TO THE PETITIONER. P7:- COPY OF THE NOTICE NO. OR 272/11-12 DTD. 3.9.2011 ISSUED BY THE 3RD RESPONDENT UNDER S. 47(2) OF THE KVAT ACT, 2003 TO THE PETITIONER. P8:- COPY OF THE LETTER DTD. 3.9.2011 SUBMITTED BY THE PETITIONER TO THE COMMERCIAL TAX AUTHORITY. P9:- COPY OF THE FORM 8FA NO.321506/8FA/366/2011 DTD. 3.9.2011 ISSUED UNDER RULE 66(6) OF THE KVAT RULES, 2005. RESPONDENT'S EXHIBITS NIL:- TRUE COPY P.A. TO JUDGE tss S. SIRI JAGAN, J. ------------------------------------------- W.P.(C) No.24197 OF 2011 ---------------------------------------------- Dated this the 5th day of September, 2011 JUDGMENT The petitioner, who is engaged in the business of manufacturing frozen foods, imported bread crumb from Chennai for use in their Ezhupunna factory. It was cleared from the Cochin Port Trust and when the same was being transported to Ezhupunna, the same was intercepted and detained by Kerala Value Added Tax authorities on allegation of attempt to evade tax. Ext.P7 notice has been issued in this regard stating that since the petitioner has used delivery note for interstate transport and admittedly the goods were being transported to Ezhupunna which is within the State, evasion of tax is suspected. It is also stated that the dealer did not file Form No.8FA in online violating the directions of the department. According to the petitioner, these are merely technical violations. The concerned clerk who filled up the delivery note inadvertently used the delivery note for interstate transport and that subsequently Form No.8FA has also been produced. Therefore, the petitioner seeks release of the W.P.(C)No.24197/11 2 goods and vehicle unconditionally. 2. This is opposed by the learned Government pleader, who points out that the reasons stated in Ext.P7 are sufficient to suspect evasion of tax. Having heard both sides, I dispose of this writ petition with a direction to the respondents to release the goods and vehicle to the petitioner on the petitioner furnishing a simple bond without sureties for the amount covered by Ext.P7. The appropriate authority under the Act shall complete proceedings pursuant to Ext.P7, as expeditiously as possible, at any rate, within three months from the date of receipt of a copy of this judgment. The security furnished by the petitioner shall be dealt with in accordance with the final orders to be passed. S. SIRI JAGAN, JUDGE acd W.P.(C)No.24197/11 3 W.P.(C)No.24197/11 4