IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE P.R.RAMACHANDRA MENON WEDNESDAY, THE 3RD JUNE 2009 / 13TH JYAISHTA 1931 WP(C).No. 15278 of 2009(D) -------------------------- PETITIONER: --------------- KUMAROTH SHIPPING AGENCIES, 24/2013, SREERAM BUILDING, INDIRAGANDHI ROAD, WEST ISLAND. BY ADV. SRI.C.A.SADASIVAN ADV. SRI.S.ABU BAKER KUNJU ADV. SRI.JOY P.JOSE ADV. SRI.RAMAN JANARDHANAN ADV. SRI.C.G.RADHAKRISHNA PILLAI ADV. SRI.SOJAN MATHEW RESPONDENTS: --------------- 1. STATE OF KERALA, REP. BY THE SECRETARY (TAXES) THIRUVANANTHAPURAM. 2. COMMERCIAL TAX INSPECTOR COMMERCIAL TAX CHECK POST, WALAYAR. 3. M/S PACHASTEEL ORGANIC LTD., B6 & B7, SECTOR C. SANWARE ROAD, INDUSTRIAL ESTATE, INDORE, MADHYAPRADESH. BY GOVERNMENT PLEADER ADV. MR. C.K. GOVINDAN. THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 03/06/2009, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: P.R. RAMACHANDRA MENON, J. ........................................................................ W.P.(C) No. 15278 OF 2009 ......................................................................... Dated this the 3rd June, 2009 J U D G M E N T M/s. Panchasteel Organic Ltd., Indore, Madhyapradesh imported the concerned goods from China, through Cochin Port, which was being transported by the petitioner being the Shipping and Clearing Agents of the said concern. While the goods were transported on 31.05.2009, it is stated that the petitioner could not collect the requisite 'transit pass' from the facilitation centre at W.Island as the driver had to proceed at about 4.00 a.m. on the said date. It is stated that necessary documents could not be procured and the defect could not be cured at Karukutty Check Post; reportedly for the reason that the said Check Post has been abolished, under which circumstances, the petitioner proceeded to Walayar, where the vehicle was intercepted, leading to Ext. P1 proceedings. 2. Heard the learned Government Pleader as well. W.P.(C) No. 15278 OF 2009 2 3. It is pointed out that the petitioner is not a registered dealer and that the ignorance pleaded from the part of the petitioner despite the mandatory requirement under Section 48 of the KVAT Act, 2003, cannot be given any weightage at all. The learned counsel appearing for the petitioner submits that there is absolutely no intention to evade any tax, particularly in view of the fact that non-procurement of the transit pass is not fatal, in view of the fact that the goods were being transported from Kerala and not brought in from outside. 4. After hearing both the sides , this Court finds it fit and proper to have the matter disposed of, directing the second respondent to release the goods to the petitioner on condition that the petitioner furnishes Bank Guarantee for 50% of the amount demanded vide Ext. P1 notice and a 'self bond' for the balance amount . On furnishing Bank Guarantee as aforesaid or on remitting 50% of Ext. P1 liability by way of cash, as the case may be, and on furnishing the self bond for the balance, the goods shall be released to the petitioner forthwith. This is without prejudice to the right of the department to pursue the W.P.(C) No. 15278 OF 2009 3 adjudication proceedings, which shall be finalised as expeditiously as possible and at any rate within a period of two months from the date of receipt of a copy of the judgment. P.R. RAMACHANDRA MENON, JUDGE. lk