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. 34354 of 2009(L) -------------------------- PETITIONER(S): --------------- M/S.MEREENA PETROCHEMICALS PVT.LTD., DOOR NO.50/130 B, PONEKKARA, ELAMAKKARA, KOCHI-682 026., REPRESENTED BY MANAGING DIRECTOR, XAVIERKUTTY.K.J. BY ADV. SRI.K.J.ABRAHAM RESPONDENT(S): --------------- THE INTELLIGENCE OFFICER, COMMERCIAL TAXES, SQUAD NO.VII, PALAKKAD. 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.34354 OF 2009 ------------------------------ Dated this the 1st day of December, 2009 J U D G M E N T ---------------------- 1. Petitioner is aggrieved by detention of transport of 'storage tanks' on issuing Ext.P6 and P6(a) notices by the respondent, under Section 47(2) of the Kerala Value Added Tax Act, 2003 (KVAT Act). The transport was intercepted at Kanjikode, Palakkad. The reason for detention mentioned in the notices is that, eventhough it is stated that the 'storage tanks' were purchased from Nilambur and transported to Kanjikode, the petitioner had no declared business place either at Nilambur or at Kanjikode, nor the complete address of the petitioner at Kanjikode was mentioned in the documents accompanied the transport. Eventhough Form 15 delivery notes were accompanying the transport, the relevant entires required therein were not filled up. No purchase bill with respect to the present transaction was also produced. Hence evasion of payment of tax was suspected and security deposit based on the value estimated is demanded. 2. According to the petitioner they are establishing a company manufacturing chemicals and solvents for which W.P.(C).34354/09-L 2 storage of Petroleum products is necessary. 'Storage tanks' in question were purchased on second-hand basis from a person at Nailmbur. The transport was accompanied by the original invoices, through which materials were purchased and labour charges were paid at the time when the tanks were originally fabricated, during the year 2005. Form 15 delivery notes as evidenced by Ext.P4 and P4(a) were also accompanying the goods. Contention of the petitioner is that the delivery notes were obtained for the specific purpose of the transport of these items and it was issued on the basis of Ext.P5 request. Therefore it is evident that the transport was not intended for sale of any goods and there is no evasion of payment of tax. 3. Learned Government Pleader appearing for respondent, on the basis of instructions submitted that, no sale bill or purchase bill with respect to the present transaction by which the petitioner had purchased the goods, is produced. Further it is pointed out that the delivery note was totally incomplete and no relevant details were furnished. 4. Having considered the rival contentions I am of the opinion that the question whether there was any attempt at evasion of payment of tax can be decided on finalisation of the proceedings under Section 47(6). But pending such finalisation, W.P.(C).34354/09-L 3 the goods can be released on the petitioner furnishing proper security. 5. Therefore the writ petition is disposed of directing the respondents to release the goods detained under Ext.P6 and P6 (a) along with the vehicles, on the petitioner making payment of 50% of the security deposit demanded under Ext.P6 and P6(a) towards advance tax, without prejudice to finalisation of the adjudication under Section 47 and without prejudice to imposition of penalty, if found ultimately liable. The petitioner shall also furnish Security Bond in the form provided under the KVAT Rules, without sureties, for the amount of security deposit demanded under Ext.P6 and P6(a). 6. 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 W.P.(C).34354/09-L 4