IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM MONDAY, THE 16TH NOVEMBER 2009 / 25TH KARTHIKA 1931 WP(C).No. 32648 of 2009(A) -------------------------------- PETITIONER(S): --------------- M/S.SHIVANI DESIGNER HARDWARE, XL/9507, GROUND FLOOR, SEEMA BUILDING, JEWS STREET, PADMA JUNCTION, ERNAKULAM, COCHIN-682 035 - REPRESENTED BY ITS MANAGING PARTNER, S.SIVANANDA BHAT. BY ADV. MR.TOMSON T.EMMANUEL RESPONDENT(S): -------------------- 1. THE INTELLIGENCE INSPECTOR, SQUAD NO.IV, COMMERCIAL TAXES, ERNAKULAM. 2. THE ASSISTANT COMMISSIONER (ASSMT) COMMERCIAL TAXES, SPECIAL CIRCLE-I, ERNAKULAM. 3. THE COMMISSIONER OF COMMERCIAL TAXES, COMMERCIAL TAXES, THIRUVANANTHAPURAM. BY GOVERNMENT PLEADER MR. C.K. GOVINDAN THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 16/11/2009, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: C.K. ABDUL REHIM, J ================== WP (C).No. 32648 of 2009 ================== Dated this the 16th day of November, 2009. J U D G M E N T 1. Petitioner is a registered dealer having their place of business at Ernakulam, dealing in Harware, Kitchen Cabinets, Plastic goods etc. This writ petition is filed challenging detention of transport of goods effected from Cochin Port to the petitioner's godown at Muttom near Aluva. According to the petitioner the goods in question are PVC profile imported from China through Cochin Port and transported to the godown of the petitioner. It is stated that the transport was accompanied by Commercial Invoice, Bill of Entry and Delivery Note in Form No.15. The transport was intercepted by the first respondent on issuing Ext.P5 notice under Section 47 (2) of the Kerala Value Added Tax Act 2003 (KVAT Act 2003). The reasons for detention mentioned therein is that the petitioner has no declared godown at Muttom near Aluva and further, as per the registration particulars, the commodities dealt with by the petitioner included only Cooking Appliances and Gas Fuel. It is also noted that as per the Delivery Note the WPC.No.32648 of 2009 (c) : 2 : goods are consigned to Ernakulam and further the value shown in the Delivery Note is not the value disclosed as per the Bill of Entry. 2. According the petitioner, the item, PVC profile, was subsequently included in the registration certificate as evidenced by Ext.P1. With reference to the godown at Muttom, it is submitted that, the petitioner had already issued a letter on 31/05/2008 to the assessing authority, as evidenced in Ext.P1 (a), copy of the Local Delivery Book. It is further submitted that the value shown in the Delivery Note is the value as per the Bill of Entry, excluding the customs duty. Therefore, it is contended that the transport was bonafide and genuine and there was a no attempt at evasion of payment of tax. 3. Heard the learned counsel for the petitioner and Government Pleader appearing for the respondent. After considering facts and circumstances, I am of the opinion that pending finalisation of adjudication the goods can be released on the petitioner furnishing proper security. WPC.No.32648 of 2009 (c) : 3 : 4. Therefore, the writ petition is disposed of directing the first respondent to release the goods along with vehicle detained under Ext.P5, on the petitioner remitting 50% of the amount of security deposit demanded under Ext.P5, towards advance tax, without prejudice to finalisation of adjudication under Section 47 and without prejudice to imposition of penalty, if found ultimately liable. The petitioner shall also furnish security bond without sureties in the form provided under the KVAT Rules for the balance 50%. 5. The competent authority under section 47 is directed to finalise the adjudication after affording an opportunity to the petitioner, as early as possible, at any rate, within the period of two months from the date of release of the goods. C.K. ABDUL REHIM, JUDGE nl