IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM THURSDAY, THE 15TH OCTOBER 2009 / 23RD ASWINA 1931 WP(C).No. 29010 of 2009(U) -------------------------- PETITIONER: --------------- VIDYUT METALLICS PVT.LTD., ADITYA, 31/689(1) S.A.ROAD, VYTTILA, ERNAKULAM-682 019. REPRESENTED BY SAJI MATHEW, AUTHORISED SIGNATORY. BY ADV. SRI.A.KUMAR RESPONDENTS: --------------- 1. THE COMMERCIAL TAX INSPECTOR COMMERCIAL TAXES CHECKPOST, FEROKE, KOZHIKODE-673 631. 2. THE ASSISTANT COMMISSIONER, SPECIAL CIRCLE II, ERNAKULAM. BY GOVT. PLEADER SRI. C.K. GOVINDAN THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 15/10/2009, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: shg/ C.K. ABDUL REHIM, J - - - - - - - - - - - - - - - - - - - - - - - W.P.(C)No. 29010 of 2009 - - - - - - - - - - - - - - - - - - - - - - - Dated this the 15th day of October, 2009 J U D G M E N T 1. Petitioner is aggrieved by detention of a consignment of goods transported from the C & F agent of the petitioner company at Ernakulam to their C & F agent at Kannur, on stock transfer basis. The petitioner claims to be a private limited company and is a registered dealer on the rolls of the 2nd respondent, and they are regularly paying tax. The company has got C & F agency both at Ernakulam and Kannur. The consignment in question is 160 cases of “Safety Razor Blades” sent on stock transfer, on the strength of 'Stock Transfer Note' as well as 'Delivery Note in Form No.15'. The detention is effected on the allegation that the duplicate carbon copy of the delivery note produced before the 1st respondent contained corrections made with ink, with respect to the value of the goods. Further it is observed that the column specifying W.P.(C)No. 29010 of 2009 -2- name, address, signature and driving license of the driver of the vehicle, is left blank. 2. Heard learned counsel appearing for the petitioner and Government Pleader appearing for the respondents. It is submitted by the petitioner that the value of the goods shown in the 'Stock Transfer Note' as well as the 'Delivery Note' is one and the same and the correction in the carbon copy with regard to the value was only bonafide, since there occurred an error while writing the value. It is further contended that since the goods are consigned on the basis of stock transfer there could not be any misuse of the original of the 'Delivery Note' or its duplicate copy, for any further consignment with an intention of evasion at payment of tax due. 3. According to the Government Pleader the duplicate copy of the Delivery Note was not expected to be corrected with ink and in such event misuse of the 'Delivery Note' for subsequent transport is reasonably suspectable. 4. Having considered rival contentions and facts and W.P.(C)No. 29010 of 2009 -3- circumstances of the case, I am of the opinion that, whether there was any attempt at evasion of payment of tax is the matter which need be decided on finalisation of the adjudication proceedings. But the goods need not be detained till finalisation of the proceedings. Considering the fact that the petitioner is a registered dealer and is regularly paying tax, and also considering the fact that the goods were dispatched on stock transfer basis from one C & F agent of the petitioner company to another, I am of the opinion that the goods can be released on the petitioner furnishing proper security, especially in view of the proviso to Section 47 (2) of the KVAT Act. 5. In the result, the Writ Petition is disposed of directing the 1st respondent to release the goods along with the vehicle detained under Ext.P6 notice, on the petitioner furnishing Security Bond for the value demanded in Ext.P6, in the form prescribed under the KVAT Rules, without sureties. W.P.(C)No. 29010 of 2009 -4- 6. The competent authority under Section 47 (5) & (6) of the KVAT Act is directed to finalise the adjudication proceedings and to pass final order, after affording opportunity to the petitioner, as early as possible at any rate within a period of two months from the date of release of the goods. C.K. ABDUL REHIM JUDGE shg/