IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE P.N.RAVINDRAN MONDAY, THE 2ND AUGUST 2010 / 11TH SRAVANA 1932 WP(C).No. 24114 of 2010(L) -------------------------- PETITIONER: --------------- MR.SHIRISH D.LILLADHER, PROPRIETOR, M/S.RELIANCE TARPAULIN INDUSTRIES WAGJIS ROAD, ALLEPPY 688 012 BY ADV. SRI.PREMJIT NAGENDRAN SMT.K.B.SUBHAGAMANI RESPONDENT: --------------- THE COMMERCIAL TAX INSPECTOR, COMMERCIAL TAX CHECK POST -B, MANJESWARAM. GOVT.PLEADER, SRI.C.K.GOVINDAN THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 02/08/2010, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: P.N.RAVINDRAN, J. -------------------------------------- W.P.(C) No.24114 OF 2010 -------------------------------------- Dated this the 2nd day of August, 2010 J U D G M E N T ~~~~~~~~~~~ The petitioner a dealer registered under the Kerala Value Added Tax Act, 2003, purchased six rolls of H.D.P.E. Laminated Fabrics valued at Rs.76,225/- from Ahmedabad. The said goods were transported by truck from Ahemmadabad to Aleppey and enroute, the goods were detained at Mangeswar Check Post on the short ground that the TIN Number of the petitioner was shown as 302040214075 instead of 32040214075 in Ext.P2 invoice. Thereupon, Ext.P4 notice was issued under section 47(2) of the Kerala Value Added Tax Act, 2003, alleging that the error in the TIN Number noticed in the invoice is suspicious and therefore, the genuineness of the documents produced for the transport and attempt to evade payment of tax are suspected. By that notice, the petitioner was directed to show cause against the proposed detention of the goods or to remit the sum of Rs.8078/- in lieu of detention of the goods and the vehicle. The petitioner, thereupon, submitted Ext.P5 representation before the Commercial Tax Inspector, W.P.(C) No.24114/2010 2 Manjeswar expressing willingness to pay the sum of Rs.8,078/- demanded in Ext.P4 as advance tax and seeking release the goods against such payment. It is stated that the said officer refused to accept the original of Ext.P4 expressing inability to receive the amount demanded in Ext.P4 as advance tax. This writ petition was thereupon filed challenging Ext.P4 and seeking the following relief. “a) Issue a writ of certiorari or other appropriate writ, direction or order calling for the records leading to Ext.P4 issued by the respondent and quashing the same.” 2. I have heard Sri.Premjit Nagendran, learned counsel appearing for the petitioner and Sri.C.K.Govindan, learned Government Pleader appearing for the respondent. I have also going through the pleadings and the materials on record. The only reason stated in Ext.P4 for issuing such a notice is the mistake in the TIN No. of the petitioner in Ext.P2 invoice. Instead of 32040214075, the TIN No. was wrongly shown as 302040214075. The error is regarding the 2nd and 3rd digits. It is for this reason that the respondent doubts the genuineness of the transaction and also an attempt to evade payment of tax. The W.P.(C) No.24114/2010 3 tax leviable on the aforesaid goods is only Rs.4,039/-. However, by Ext.P4 the petitioner was called upon to remit Rs.8,078/- being twice the amount of the tax as a condition for release of the goods, failing which the petitioner was required to show cause against the detention of the goods and the vehicle. 3. In my opinion, as the petitioner is admittedly a registered dealer and the name of the petitioner appears in Ext.P2 invoice without any mistake and the only error pointed out is the mistake in the 2nd and 3rd digits of the TIN No. which were given in the reverse order, the respondent should have permitted the petitioner to clear the goods upon payment of the sum of Rs.8,078/- as advance tax. Such payment would not have disabled the department from finalising the proceedings initiated against the petitioner under Section 47 of the Kerala Value Added Tax Act. On the other hand, even if the final orders were to be adverse to the petitioner, the payment having been made, the interests of the revenue would not have bee prejudiced. I accordingly dispose of the Writ Petition with the following directions: W.P.(C) No.24114/2010 4 The respondent shall, on the petitioner remitting the sum of Rs.8,078/- demanded in Ext.P4 as advance tax with the Commercial Tax Officer having jurisdiction over the petitioner and producing proof of such payment, release the goods described in Ext.P4 to the petitioner. The goods shall be released on the day the petitioner produces the proof of such payment. The respondent or the competent officer of the Commercial Taxes Department shall pass final orders pursuant to Ext.P4 notice, expeditiously and in any event, within one month from the date of said release of the goods, after affording the petitioner a reasonable opportunity of being heard. It is clarified that the release of the goods and acceptance of the sum of Rs.8,078/- from the petitioner by way of advance tax will not disable the department from finalising the proceedings initiated under Ext.P4. The contentions of both sides on the merits are kept open. (P.N.RAVINDRAN, JUDGE) ps