IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM THURSDAY, THE 1ST OCTOBER 2009 / 9TH ASWINA 1931 WP(C).No. 27464 of 2009(C) -------------------------- PETITIONER(S): --------------- M/S.P.V.GEORGE THARAKAN & COMPANY, CHURCH ROAD,NEAR AIR CARGO COMPLEX, VALLAKKADAVU P.O.,TRIVANDRUM-8, REP.BY ITS PROPRIETOR,MR.RAJAN K.MADHAVAN. BY ADV. SRI.K.J.ABRAHAM RESPONDENT(S): --------------- THE INTELLIGENCE OFFICER, SQUAD NO.II,THE COMMERCIAL TAXES DEPARTMENT, CHENGANNOR,ALAPPUZHA DISTRICT. BY GOVT.PLEADER SHRI. C.K. GOVINDAN THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 01/10/2009, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: C.K. ABDUL REHIM, J. - - - - - - - - - - - - - - - - - - - - - - - - - - - W.P.(C). NO: 27464 OF 2009 - - - - - - - - - - - - - - - - - - - - - - - - - - - - Dated this the 1st Day of October, 2009. JUDGMENT The petitioner is a firm engaged in the business of export, import, baggage clearances, and door to door services. It is submitted that when foreign goods despatched by N.R.I. persons through Air cargo to Trivandrum Airport was cleared by the petitioner after remitting customs duty, and when such goods which are only house hold articles were transported to the customers, who are relatives of such N.R.Is, the respondent intercepted such transport effected in two vehicles, on issuing notices under Section 47(2) of the K.V.A.T Act, as evident by Exts. P4 and P4(a). According to the petitioner, they have produced documents such as copies of passport of the persons who had despatched the goods, challans evidencing remittance of customs duty, authorisation letters from the persons who had entrusted the goods for W.P.(C) NO: 2261OF 2007 :2: clearance etc. which are accompanying the transport. It is further submitted that goods detained are foreign goods cleared from Air cargo intended to be supplied for domestic use by relatives of consignors and there is absolutely no element of tax evasion involved in the transport. 2. On a perusal of Exts.P4 and P4(a) notices, it is revealed that the goods were detained assigning reason that the transport was not accompanied by documents as prescribed under Circular No:15 of 2005 and Circular No: 33 of 2006. In a statement filed on behalf of the first respondent, it is contended that as per Circular No: 15 of 2005, the transport of Air cargo ought to have been accompanied with documents such as, packing list of goods from sender, passport details and declaration from the sender abroad showing relationship with the receiver in Kerala etc. and since the requirements under the Circular has not been complied with the goods are detained. 3. Considering the facts and circumstances as evidenced by the documents, it is revealed that the goods detained are only foreign goods cleared from the Air cargo. It is also evident from the documents W.P.(C) NO: 2261OF 2007 :3: which accompanied the transport that those goods are despatched by persons employed abroad and the goods were cleared after payment of customs duty. The question whether any suspected evasion of tax can be attributed on the basis of non production of documents, as insisted under Circular No: 15 of 2005, is a matter which has to be decided in a process of adjudication to be followed on the basis of detention. However, I find no reason to detain the goods pending finalisation of such adjudication process, especially in view of the fact that the goods are house hold goods of foreign origin, collected from the Air Cargo. 4. Under the above circumstances, this Writ Petition is disposed of directing the respondent to release the goods detained under Exts.P4 and P4(a) notices, on condition of the petitioner furnishing Security Bond the Form prescribed under the K.V.A.T Rules, without sureties, to the tune of the amount of security deposit demanded under those notices. 5. The Competent Authority under Section 47 is directed to finalise the adjudication as early as possible after affording an W.P.(C) NO: 2261OF 2007 :4: opportunity of hearing to the petitioner, at any rate within a period of two months from the date of release of the goods. It is further directed that on furnishing the security bond, the goods shall be released forthwith. C.K.ABDUL REHIM, (JUDGE) dl/