IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM THURSDAY, THE 11TH NOVEMBER 2010 / 20TH KARTHIKA 1932 WP(C).No. 33744 of 2010(P) -------------------------------------- PETITIONER: ------------------- M/S.AGHIN INNOVATIONS, ANNIE HALL ROAD, CALICUT, REP.BY PERSONAL MANAGER,K.P.RAMACHANDRAN. BY ADVS. SRI.P.RAGHUNATH, SRI.PREMJIT NAGENDRAN. RESPONDENT: ---------------------- INTELLIGENCE INSPECTOR, SQUAD NO.1, COMMERCIAL TAXES,THIRUVANANTHAPURAM. BY SR. GOVT. PLEADER SRI. C.K. GOVINDAN. THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 11/11/2010,THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: prv. C. K. ABDUL REHIM, J. =~=~=~=~=~=~=~=~=~=~=~=~=~=~=~=~= W.P.(C) No. 33744 of 2010 =~=~=~=~=~=~=~=~=~=~=~=~=~=~=~=~= Dated this the 11th day of November, 2010 JUDGMENT Goods transported by the petitioner along with goods consigned by a sister concern of the petitioner, was intercepted and detained on issuing Ext.P2 notice under section 47(2) of the the Kerala Value Added Tax Act, 2003. The reason for the detention mentioned in Ext.P2 is that one among the two invoices does not contain any endorsement to the effect that such goods were declared at the Commercial Tax Check Post at Thamarassery. 2. The allegation is that, the invoice bearing No.284 dated 4-11-2010, was seen sealed in the first check post, but it was not seen entered in the inward register and it was not signed by the commercial tax authority. This bill was not seen produced before the commercial tax authority in the second check post at Thamarassery. Accordingly it is presumed that the said bill was not produced before the commercial tax authority with a mala fide intention of non- W.P.(C) No. 33744/2010 2 disclosure of the transaction in the accounts of the petitioner. 3. According to the petitioner, the goods under transport were covered by four invoices, two of them issued by the petitioner and two of them issued by a sister concern. Goods were destined to consignees at Kollam and Thiruvananthapuram and the vehicle was intercepted while proceeding towards Thiruvananthapuram, after unloading the goods at Kollam. At the time of interception, the goods covered by the two invoices were only available. According to the petitioner, the entire goods covered by all the four invoices were declared at both the check posts, at Lakkidi and Thamarassery, and the endorsements were effected in the list (statement) furnished.Learned counsel for the petitioner produced the said list (statement) for my perusal, which bears seal of the Check Post at Thamasrassery. It is contended that the allegation in Ext.P2 notice was raised without making any cross verification with the commercial tax authorities at the check posts. W.P.(C) No. 33744/2010 3 4. Heard learned Government Pleader appearing for the respondent. It is submitted that one of the bills does not contain necessary endorsement, and therefore the suspicion of mala fide intention is reasonable and the goods could not be released without furnishing security. 5. Question whether there was any mala fide intention in the transport and as to whether there was any attempt in evasion of tax, are a matter which need be decided on finalizing the enquiry as contemplated under section 47. Having considered the facts and circumstances and having perused the documents produced, I am of the opinion that the goods can be released pending finalization of the enquiry, on the petitioner furnishing adequate security. 6. Under the above circumstances, the writ petition is disposed of directing the respondent to release the goods along with the vehicle detained under Ext.P2 notice, on the petitioner furnishing security bond, without sureties, in the form prescribed under the KVAT Rules for the amount demanded under Ext.P2. W.P.(C) No. 33744/2010 4 7. The competent authority is directed to finalize the enquiry at the earliest possible, after affording an opportunity of hearing to the petitioner, at any rate within a period of six weeks from the date of release of the goods. C. K. ABDUL REHIM, JUDGE. mn.