IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE K.M.JOSEPH MONDAY, THE 29TH SEPTEMBER 2008 / 7TH ASWINA 1930 WP(C).No. 28593 of 2008(D) -------------------------- PETITIONER(S): --------------- M/S. ALKEM LABORATORIES LTD., DEVASHISH, ALKEM HOUSE, LOWER PAREL, MUMBAI - 400013 REPRESENTED BY ITS AUTHORISED SIGNATORY T.K.HARIDAS. BY ADV. SRI.V.P.SUKUMAR SRI.KURYAN THOMAS RESPONDENT(): --------------- THE COMMERCIAL TAX INSPECTOR, COMMPRCIAL TAX CHECK POST, WALAYAR, PALAKKAD DISTRICT. BY GOVERNMENT PLEADER ADV.SRI.C.K.GOVINDAN THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 29/09/2008, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: K.M. JOSEPH, J. ```````````````````````````````````````````````````` W.P.(C) No. 28593 OF 2008 D ```````````````````````````````````````````````````` Dated this the 29th day of September, 2008 J U D G M E N T Petitioner challenges Ext.P3. Ext.P3 is a notice issued to the petitioner under section 47(2) of the KVAT Act in which it is stated as follows. “ Neither the consignor nor the consignee is registered under the KVAT Act, 2003.” 2. Case of the petitioner in brief is as follows, the petitioner despatched 677 boxes of alopathic medicines from its Chandigarh factory to its Chennai Branch as per Ext.P2 stock transfer invoice through M/s.Southern Cargo & Logistics who had leased wagons of the Indian Railways at its disposal. The consignment was transported from Chandigarh to Ernakulam by train and from Ernakulam to Chennai it was transported by road. When the consignment reached Walayar, it was detained by Ext.P3 notice. 3. I heard learned counsel for petitioner and learned Government Pleader. Learned counsel for petitioner submits that this is a case where there is no element of tax involved under the WPC.28593/08 : 2 : KVAT Act and there is no allegation in Ext.P3 notice that the petitioner is attempting to evade tax due under the KVAT Act which is a pre-condition for invoking section 47(2) of the said Act. Learned counsel for petitioner points out that the Kerala Branch of the petitioner company is registered under the KVAT Act and is remitting around Rs.20 lakhs every month towards sales tax. M/s.Southern Cargo & Logistics filed Ext.P4 reply. It is stated therein that it had not taken transit pass from the Karukutti check post due to ignorance. 4. Having regard to the facts of the case, I feel that the goods can be released on executing a bond by the Kerala Branch of the petitioner which has registration under the KVAT Act. Accordingly, writ petition is disposed of as follows. Upon the Kerala Branch of the petitioner, having registration under the KVAT Act, executing a bond for the amount demanded in Ext.P3, the goods in question will be released to the petitioner forthwith. The adjudication process will be completed within two months from the date of receipt of a copy of this judgment. (K.M.JOSEPH, JUDGE) aks