IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE P.R.RAMACHANDRA MENON THURSDAY, THE 5TH AUGUST 2010 / 14TH SRAVANA 1932 WP(C).No. 24658 of 2010(F) -------------------------------------- PETITIONER(S): -------------------- MUHAMMED RAFEEK, FAMOUS EXPORTERS CHALLISSERY PO, PALAKKAD DISTRICT. BY ADV. SRI.N.MURALEEDHARAN NAIR SMT.K.HYMAVATHY RESPONDENT(S): ----------------------- INTELLIGENCE INSPECTOR , SQUAD NO.V, COMMERCIAL TAXES, MALAPPURAM AT NILAMBUR 679 329. SR. GOVERNMENT PLEADER MR.C.K.GOVINDAN THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 05/08/2010, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: sou. P.R.RAMACHANDRA MENON, J --------------------------- W.P(C) No.24658 of 2010 ---------------------------- Dated this the 5th day of August, 2010. J U D G M E N T The petitioner who is a registered dealer under the KVAT Act was transporting dried arecanut in the vehicle bearing registration No.TN-43-2/7200 to the destination in Rajasthan on the strength of Ext.P1 delivery note. When the vehicle was proceeding as above, the same was intercepted by the respondent on 3.8.2010 issuing Ext.P2 notice u/s 47(2) of KVAT Act doubting evasion of tax and demanding security deposit to the extent as specified therein, which in turn is under challenge in this writ petition. The reason for doubting tax as given in Ext.P2 is extracted in paragraph 2 of the writ petition which reads as: “(1) Time of commencement of journey is not written in the prescribed column of the delivery note accompanied, which is against existing rule(2) And also the signature of the consignor in the D note is not dated as required in the prescribed column of the D note and is also against existing directions and rule. Possibility of using the same D W.P.C. No.24658/10 2 note for another consignment in between the destination is suspected (3) And also 795 Kgs of goods is seen excess as per the weighment slips accompanied 300 Kgs of the weight of sacks is deducted from this and S.D and cess demanded for 20495 Kgs of arecanut. Value estimated to Rs.1024750/- S.D. Rs.81980+CessRs.8198/- =90178 ie.,Rs.90180/- and AT Rs.40990 +Cess 4100 Total 45090/- also demanded.” The learned counsel for petitioner submits that the alleged incriminating circumstances are rather 'technical' in nature and hence that the detention is unjustified. 2. Learned Government pleader appearing for the respondent submits that with reference to the materials on record that there is no explanation at all with regard to the aspects pointed out in Ext.P2 notice and that the same will rather amount to admission of the defects. This being the position, the action pursued by respondent, issuing Ext.P2 notice is in conformity with the statutory prescription and not assailable under any circumstances. 3. Considering the nature of the transaction and also the materials on record this court finds that this matter requires adjudication by the competent authority, so as to bring out the true W.P.C. No.24658/10 3 state of affairs to light. The correctness of the figures given with regard to the rate of Cess shown in Ext.P2 notice shall also be considered in the course of adjudication proceedings as above. However, for that matter, the vehicle and the goods need not be detained any further and the same shall be released to the petitioner forthwith, on condition that the petitioner deposits 50% of the security deposit demanded vide Ext.P2 ether in cash or by 'bank guarantee' and furnishes security for the balance amount. This will be without prejudice to the rights and liberties of the respondent to pursue adjudication proceedings, which shall be finalised in accordance with the relevant provisions of law, as expeditiously as possible, at any rate within a period of two months from the date of receipt of copy of this judgment. This writ petition is disposed of accordingly. P.R.RAMACHANDRA MENON JUDGE sou.