IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM WEDNESDAY, THE 23RD DECEMBER 2009 / 2ND POUSHA 1931 WP(C).No. 37470 of 2009(C) -------------------------- PETITIONER(S): --------------- AFCONS INFRASTRUCTURE LTD., REP. BY ITS MANAGER, (PROCUREMENT) E.P.C.C. MARINE PROJECT, NEAR B.P.C. L. REGINERY, PUTHUVYPEEN.P.O., ERNAKULAM COCHIN-682508. BY ADVS. SRI.C.A.SADASIVAN SRI.S.ABU BAKER KUNJU SRI.JOY P.JOSE SRI.RAMAN JANARDHANAN SRI.SOJAN MATHEW SRI.K.N.KRISHNAN NAMBOOTHIRI RESPONDENT(S): --------------- 1. THE SECRETARY, TAXES, SECRETARIAT, THIRUVANANTHAPURAM. 2. THE DEPUTY COMMISSIONER, COMMERCIAL TAXES, IDUKKI AT KATTAPPANA. 3. THE COMMERCIAL TAX INSPECTOR, CT CHECK POST, KUMILY. BY GOVT. PLEADER SRI. V.K. SHAMSUDHEEN THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 23/12/2009, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: shg/ C.K. ABDUL REHIM, J. - - - - - - - - - - - - - - - - - - - - - - - W.P.(C)No. 37470 of 2009 - - - - - - - - - - - - - - - - - - - - - - - Dated this the 23rd day of December, 2009 J U D G M E N T 1. Petitioner is aggrieved by detention of 'Tyres' and 'Tubes' transported interstate. According to the petitioner they are executing works contracts and had taken registration under the Kerala Value Added Tax Act, 2003 (KVAT Act) and Central Sales Tax Act (CST Act). At present they are executing “Marine Jetty Works for LNG Petronet” at Puthuvypeen, Cochin. The 'Tyres and Tubes' were purchased for own use, to be fitted to the earth moving machinery owned by the petitioner. 2. The detention was effected on issuing Ext.P3 notice stating the reason for detention that the petitioner is not authorized to bring such goods on paying concessional rate of Central Sales Tax, since those goods are not covered under the CST registration. On the other hand the W.P.(C)No. 37470 of 2009 -2- petitioner contended that the goods are parts of the machinery/equipment used in execution of the petitioner's business activity. 3. Having considered facts and circumstances of the case, I am of the opinion that the question as to whether there is any attempt at evasion of payment of tax can be decided on finalisation of adjudication contemplated under Section 47. But pending finalisation of such adjudication the goods need not to detained, provided the petitioner furnishes Security for the amount covered under Ext.P3. 4. Accordingly the 3rd respondent is directed to release the goods detained under Ext.P3 on condition of the petitioner furnishing Security Bond in the form provided under the KVAT Rules, without sureties, to the value of security deposit demanded under Ext.P3. W.P.(C)No. 37470 of 2009 -3- 5. The competent authority under Section 47 is directed to finalise the adjudication with notice to the petitioner at the earliest, at any rate within a period of one month from the date of release of the goods. C.K. ABDUL REHIM JUDGE shg/