IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM TUESDAY, THE 1ST DECEMBER 2009 / 10TH AGRAHAYANA 1931 WP(C).No. 34319 of 2009(H) -------------------------- PETITIONER(S): --------------- M/S. WOOD CRAFT PANEL & VENEERS, 12/668 A, ROSE VILLAGE, PADAMUGAL PALACHODU ROAD, KAKKANAD, KOCHI-682030, A REGISTERED PARTNERSHIP FIRM REPRESENTED BY ITS MANAGING PARTNER, SRI.K.M.PREMNATH. BY ADV. SRI.E.P.GOVINDAN RESPONDENT(S): --------------- 1. THE INTELLIGENCE INSPECTOR, SQUAD NO.I, COMMERCIAL TAXES, KOZHIKODE. 2. THE INSPECTING ASST. COMMISSIONER, COMMERCIAL TAXES, COMMERCIAL TAX CHECK POST, WALAYAR. 3. STATE OF KERALA, REPRESENTED BY THE SECRETARY, TAXES DEPARTMENT, GOVERNMENT SECRETARIAT, TRIVANDRUM. GOVERNMENT PLEADER SRI.V.K.SHAMSUDHEEN THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 01/12/2009, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: C.K.ABDUL REHIM, J. ------------------------------ W.P.(C).No.34319 OF 2009 ------------------------------ Dated this the 1st day of December, 2009 J U D G M E N T ---------------------- 1. Detention of the goods under transport, on issuing Ext.P2 notice under Section 47(2) of the Kerala Value Added Tax Act, 2003 (KVAT Act), is under challenge. The reason for detention mentioned in Ext.P2 is that the goods under transport, which is plywood, is a notified item and no delivery note issued either by the consignor or consignee was accompanying the goods. Therefore evasion of payment of tax is suspected. 2. According to the petitioner the goods in question was purchased from a dealer in West Bengal, by virtue of Ext.P3 tax invoice and the transport was accompanied by Ext.P4 declaration issued by the petitioner and also a declaration issued by the consignor in form 48 under the Sales Tax Rules applicable to the State of West Bengal. According to the petitioner, as per Ext.P6 circular issued by the Commissioner of Commercial Taxes, it is prescribed that in such cases the delivery note issued under the respective local Acts of the State from where the goods are consigned, can be treated as valid if it is accompanied with a letter of confirmation issued by the consignee. In this case the W.P.(C).34319/09-H 2 document accompanied the transport has satisfied the above condition, is the contention. 3. While taking note of the above situation, I am of the opinion that the question whether there was any attempt at evasion of payment of tax is a matter which can be decided on finalisation of adjudication under Section 47 of the KVAT Act. At the same time the goods need not be detained pending such finalisation. Considering the fact that the petitioner is a registered dealer and the transport was effected on the basis of a tax invoice, I am of the opinion that the goods can be released on the petitioner furnishing proper security. 4. Therefore the writ petition is disposed of directing respondents 1 and 2 to release the goods detained under Ext.P2 along with the vehicle, on the petitioner furnishing security bond in the form provided under the KVAT Rules, without sureties, for the value of security deposit demanded under Ext.P2. 5. The competent authorities under Section 47(5) and (6) are directed to expedite the adjudication and to finalise the same after affording an opportunity to the petitioner, as early as possible, at any rate within a period of one month from the date of release of the goods. C.K.ABDUL REHIM, JUDGE. okb