IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM WEDNESDAY, THE 15TH JUNE 2011 / 25TH JYAISHTA 1933 WP(C).No. 15989 of 2011(W) ------------------------------------ PETITIONER(S): ----------------------- 1. M/S.TRANSASIA BIO-MEDICALS LTD, IIND FLOOR, 33/1691/C-1,PALAKKAL BUILIDNG, CHAKKARAPARAMBU, VENNALA P.O.,COCHIN-682028, REP.BY NAVEEN PRAKASH, DEPUTY ZONAL MANAGER- SALES AND MARKETING 2. M.T.MUNEER, MEETHELA THAYYIL HOUSE, CHARAPURAM P.O.,KOZHIKODE DIST BY ADV. SRI.ANIL D. NAIR SRI.J.R.PREM NAVAZ SMT.NIVEDITA A.KAMATH RESPONDENT(S): ------------------------ 1. THE COMMERCIAL TAX INSPECTOR, COMMERCIAL TAXES CHECK POST, FEROKE P.O., KOZHIKODE.673001 2. THE STATE OF KERALA,REP.BY ITS SECRETARY(TAXES)SECRETARIAT, THIRUVANANTHAPURAM.695001 BY GOVERNMENT PLEADER SRI.V.K.SHAMSUDHEEN THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 15/06/2011, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: WP(C).No. 15989 of 2011(W) EXHIBIT.P1: TRUE COPY POF TE REGISTRATION CERTIFICATE ISSUED BY THE FIRST RESPONDENT UNDER THE KERALA VALUE ADDED TAX ACT TO THE FIRST PETITIONER. EXHIBIT.P2: TRUE COPY OF THE ORDER DATED 18.11.2010 PLACED BY THE SECOND PETIIONER TO THE FIRST PETITIONER. EXHIBIT.P3: TRUE COPY OF THE INVOICE DATED 30.12.2010 ISSUED BY THE FIRST PETIIONER TO THE SECOND PETITIONER. EXHIBIT.P4: TRUE COPY OF THE FORM NO.8F ACCOMPANYING THE CONSIGNMENT AND FORM NO.16. EXHIBIT.P5: TRUE COPY OF THE FORM NO.16 ACCOMPANYING THE CONSIGNMENT. EXHIBIT.P6: TRUE COPY OF FORM NO.17-A ISSUED BY THE FIRST RESPONDENT TO THE PETITIONERS. //TRUE COPY// P.S TO JUDGE C.K.ABDUL REHIM,J. ------------------------------- WP(C).NO. 15989 of 2011 --------------------------------- Dated this the 15th day of June, 2011 JUDGMENT Challenge in this writ petition is against proceedings initiated under section 47(2) of the KVAT Act 2003. The goods under transport was detained for the reason that Form 16 certificate of ownership which accompanied the transport had revealed that the goods are intended for sale but it was noticed that the consignee is not a registered dealer. At the same time CST was seen paid only at the concessional rate of 2%. Under such circumstances security deposit was demanded for releasing of the goods to the tune of Rs.1,01,000/-. 2. Learned counsel for the petitioner submits that the petitioner is ready and willing to make payment of the security deposit for getting release of the goods pending finalisation of the enquiry, if it is permitted to make payment of the deposit computing rate of tax at 4% instead of 12.5%. The contention is that goods in question are bio-medical equipments which is liable to be taxed only at the rate of 4%. WP(C) .15989/2011 2 3. I notice that the detention was as early as on 9.1.2011. The goods are remaining detained in the premise of the parcel service, since the said date onwards. Under such circumstances interest of justice will be served if a direction is issued to the competent authority to finalise the enquiry as contemplated under section 47(5) and (6) at the earliest possible. 4. Therefore the writ petition is disposed of directing the competent authority under section 47(5) and (6) having jurisdiction over the matter to finalise the enquiry after affording an opportunity of hearing to the petitioner as early as possible, at at any within a period of two weeks from the date of receipt of a copy of this judgment. 5. Needless to say that release of the goods shall be made without any further delay subject to the outcome of the proceedings which will be finalised C.K.ABDUL REHIM,JUDGE pmn/ WP(C) .15989/2011 3