IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM MONDAY, THE 11TH OCTOBER 2010 / 19TH ASWINA 1932 WP(C).No. 31022 of 2010 (C) ------------------------------ PETITIONER: ------------------ M/S.ASIA MOTOR WORKS LIMITED, BUILDING NO.XVIII/6 (XVI/14E), SEA PORT AIR PORT ROAD, KAIPADAMUGAL, THRIKKAKARA, KALAMASSERY, COCHIN-682021., REPRESENTED BY ITS AUTHORISED SIGNATORY, HARISH KUMAR A. BY ADV. SRI.K.J.ABRAHAM RESPONDENT: --------------------- THE INELLIGENCE INSPECTOR, COMMERCIAL TAXES CHECK POST, ARIYAMKAVU P.O., KOLLAM. BY GOVERNMENT PLEADER, SRI.C.K.GOVINDAN THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 11/10/2010, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: VK C.K. ABDUL REHIM, J ------------------------------ WP(C) NO. 31022 OF 2010 ------------------------------------- Dated this the 11th day of October, 2010 JUDGMENT Exts.P5 and P5(a) notices issued under Section 47(2) of the Kerala Value Added Tax Act (KVAT Act) is under challenge in this Writ Petition. The petitioner is a registered dealer under the KVAT Act and the CST Act. Petitioner is engaged in trading and servicing of different types of motor vehicles, especially heavy goods vehicles. Two chasis of heavy goods vehicles including the cabin fitted thereon were detained during the course of transport from Madurai to Cochin. According to the petitioner those vehicles were brought only for demonstration purpose. 2. On a perusal of Exts.P5 and P5 (a), it is noticed that the detention was for the reason that the stock transfer invoices, which accompanied the transport revealed that the chasis in question is destined to their dealer at Cochin. But 2 WP(C) No. 31022/2010 as per the declaration in form No. 8 F submitted the chasis in question were destined to Cochin. According to the petitioner the chasis were destined to Cochin and intended only for the purpose of demonstration at Cochin, and that the same will be transported back to Gujarat. 3. Learned Government Pleader appearing on behalf of respondents, on the basis of instructions, submitted that in the stock transfer invoices as well as the delivery notes which accompanied the goods revealed the address of both the consignor and the consignee, as one and the same, i.e., the address of the petitioner at Gujarat. On the other hand, the form 8 F declaration revealed that the consignment is destined to the dealer of the petitioner at Cochin. Therefore there is discrepancy in the documents and evasion in payment of tax was suspected. 4. It is revealed that both the petitioner as well as their dealer at Cochin are registered dealers under the KVAT Act and CST Act. According to the petitioner the 3 WP(C) No. 31022/2010 chasis in question will be transported back to Gujarat. Therefore I am of the opinion that pending finalisation of enquiry, the detention can be ordered to be released on proper security. The competent enquiry officer can be directed to finalise the matter expeditiously subject to restrictions imposed on re-transport of the chasis till finalisation of the enquiry. 5. Under the above circumstances, the Writ Petition is disposed of directing the respondent to release the chasis detained under Exts.P5 and P5(a), on the petitioner furnishing Security Bonds in the form prescribed under the KVAT Rules, without sureties, for the value of the Security Deposit demanded. The petitioner will also furnish an undertaking in the form of an affidavit to the effect that the chasis in question will not be retransmitted out of the State before finalising the enquiry proceedings. 6. The competent authority under Section 47 is directed to finalise the enquiry within a period of two 4 WP(C) No. 31022/2010 weeks, after affording an opportunity of hearing to the petitioner. C.K. ABDUL REHIM JUDGE dnc