IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM MONDAY, THE 22ND NOVEMBER 2010 / 1ST AGRAHAYANA 1932 WP(C).No. 34834 of 2010(D) --------------------------------------- PETITIONER: ------------------- K.P.MANIKANDAN,MATS INDIA ENTERPRISES, 28/1000,K.P.VALLON ROAD,NOW AT CLUB ROAD, GIRINAGAR,KADAVANTHRA,KOCHI-682 020. BY ADVS. SRI.N.MURALEEDHARAN NAIR, SMT.K.HYMAVATHY. RESPONDENT: ---------------------- INTELLIGENCE INSPECTOR,SQUAD NO.VIII, DEPARTMENT OF COMMERCIAL TAXES,EDAPPALLY, KOCHI-682 024. BY SR. GOVT. PLEADER SRI. C.K. GOVINDAN. THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 22/11/2010,THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: prv. C.K.ABDUL REHIM, J. ------------------------------------------- W.P.(C).No.34834 of 2010 ------------------------------------------- Dated this the 22nd day of November, 2010 J U D G M E N T ---------------------- Petitioner is aggrieved by interception of transport of 5 Nos. of LPG Stoves and a Tower fan, which were carried in an Autorikshaw bearing Regn.No:KL-07/BM-6404, belonging to the petitioner. According to the petitioner, the goods in question were taken from their place of business at Kadavanthra to Aluva for the purpose of effecting service of the above said items. Ext.P1 is the notice issued under Section 47(2) of the Kerala Value Added Tax Act, 2003 (KVAT Act). The reason for detention is that the goods under transport were not accompanied by any documents prescribed under Section 46(3) of the KVAT Act inspite of the fact that the goods were meant for servicing. 2. Apart from Ext.P1 notice issued under Section 47 (2), the authorities had issued notice under Section 69(1) proposing to impose penalty on allegation that the vehicle in question was found to be transporting goods without any supporting documents. So also, Ext.P3 notice was issued W.P.(C).34834/10-D -2- proposing action to seize the goods under Section 47(8) of the KVAT Act. Complaint of the petitioner is that inspite of detention on 8.10.2010 the authority concerned is not finalising the enquiry proceedings. Hence the petitioner seeks release of the goods along with the vehicle. 3. Heard, learned Government Pleader appearing on behalf of the respondent. It is submitted that the transport in question was detained finding that no documents were accompanying along with the transport. It is further stated that, subsequent enquiry conducted by the respondent revealed that the petitioner is clandestinely doing business dealing with LPG Stoves, Tower fans, etc. and goods are being sold from an undeclared place, without proper documents. 4. Considering the rival submissions, I am of the view that the writ petition can be disposed of directing the authority to finalise the matter based on Ext.P1 to P3 notices at the earliest possible. However, the vehicle in question (Autorikshaw) can be released pending finalisation of the enquiry on the petitioner furnishing bank guarantee for the amount demanded under Ext.P2 notice. 5. Therefore the writ petition is disposed of directing the respondents to release the Autorikshaw bearing Regn.No:KL- W.P.(C).34834/10-D -3- 07/BM-6404, after keeping the goods in safe custody, on the petitioner furnishing bank guarantee for a sum of Rs.14,645/- as demanded in Ext.P2 subject to finalisation of the proceedings initiated under Section 69(1) of the KVAT Act. 6. The competent authority under Section 47 is directed to finalise the enquiry pursuant to Ext.P1 and P3 notices after affording an opportunity of hearing to the petitioner, at the earliest possible, at any rate, within a period of one month from the date of receipt of a copy of this judgment. The authority concerned shall finalize the proceedings initiated under Section 69(1) also, within the said period. 7. Needless to say that disposal of the goods detained shall be made subject to final outcome of the proceedings to be completed as directed above. C.K.ABDUL REHIM, JUDGE. okb