IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM MONDAY, THE 21ST DECEMBER 2009 / 30TH AGRAHAYANA 1931 WP(C).No. 36759 of 2009(L) -------------------------- PETITIONER(S): --------------- M/S. SURABHI WOODS, XIX/367-369 NEAR RAILWAY STATION, NH-47, ANGAMALY, REPRESENTED BY ITS MANAGING PARTNER, SHRI SHIBU AUGUSTINE. BY ADV. SRI.T.M.SREEDHARAN SMT.C.K.SHERIN SRI.V.P.NARAYANAN RESPONDENT(S): --------------- 1. THE INTELLIGENCE INSPECTOR, SQUAD NO.IV, ERNAKULAM DEPARTMENT OF COMMERCIAL TADES, GOVERNMENT OF KERALA, EDAPALLY, COHIN - 682 024. 2. THE COMMERCIAL TAX INSPECTOR, COMMERCIAL TAXES FACIILTIATION CENTRE, W. ISLAND, COCHIN - 682 003. 3. THE ASSISTANT COMMISSIONER(ASSESSMENT), SPECIAL CIRCLE, COMMERCIAL TAXES, MATTANCHERY AT ALUVA. GOVERNMENT PLEADER SRI. C.K. GOVINDAN THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 21/12/2009, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: C.K. ABDUL REHIM, J. - - - - - - - - - - - - - - - - - - - - - - - - - - - - W.P. (C) No. 36759 OF 2009 - - - - - - - - - - - - - - - - - - - - - - - - - - - - Dated this the 21st day of December, 2009 J U D G M E N T 1. Writ petition is filed challenging detention of imported timber transported from Cochin Port, on issuing Ext.P2 notice under section 47(2) of the Kerala Value Added Tax Act, 2003(KVAT Act). The transport was accompanied by Delivery note in form No.15 and Bill of Entry along with measurement slips. The detaining authority noticed that 'shipping mark' noted on the Bill of Entry is “SWISS/SURABHI-1/ COCHIN, SWISS/SURABHI-2/COCHIN” and SWISS/SURABHI-3/COCHIN. But on physical verification, it is found that the 'shipping mark' on the timber under transport is “SWISS/ WOODIN-5”. Therefore, it was suspected that the timber log under transport is not the one covered under the Bill of Entry, and that advance tax is not paid with respect to the timber which is transported. Therefore evasion of payment of tax is suspected, especially because timber is an item prompt to tax evasion. 2. Learned Government Pleader appearing for respondents submitted that the shipping mark “SWISS WOODIN-5” denotes WPC.36759 of 2009 : 2 : the name of another dealer and it is suspected that the petitioner is illegally transporting the timber imported by another dealer with a view to evade payment of tax. 3 I am not intending to enter upon any findings regarding the allegation of evasion of payment of tax, in view of the adjudication contemplated under Section 47. The continued detention of the goods till finalisation of the adjudication is not warranted. Therefore the goods can be released on the petitioner furnishing the Bank Guarantee. 4. Under the above circumstances, the writ petition is disposed of directing the first respondent to release the goods detained under Ext.P2 notice, along with the vehicle, on the petitioner furnishing Bank Guarantee for the amount of security deposit demanded therein. 5. The competent authorities under section 45(5) & (6) are directed to finalise the adjudication at the earliest, after affording an opportunity of hearing to the petitioner, at any rate within one month from the date of release of the goods. ( C.K. ABDUL REHIM, JUDGE) jma