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. 37617 of 2009(V) -------------------------- PETITIONER(S): --------------- M/S. JAI HIND TRADERS, 31/689B, ELENJICKAL BUILDINGS, S.A.ROAD, VYTTILA, SHIFTED TO 29/621 K, JAIN TOWER, III FLOOR, VYTTILA, KOCHI-19, REPRESENTED BY MAHENDRA KUMAR JAIN, MANAGING PARTNER. BY ADV. SRI.ARIKKAT VIJAYAN MENON RESPONDENT(S): --------------- 1. ASST.COMMISSIONER (KVAT), SPECIAL CIRCLE, MATTANCHERRY AT ALUVA. 2. INTELLIGENCE INSPECTOR, INTELLIGENCE SQUAD NO.II, DEPARTMENT OF COMMERCIAL TAXES, PALAKKAD. BY GOVERNMENT 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: C.K.ABDUL REHIM, J. ------------------------------ W.P.(C).No.37617 OF 2009 ------------------------------ Dated this the 23rd day of December, 2009 J U D G M E N T ---------------------- 1. Writ petition is filed challenging interception and detention of 'TMT Bars' transported inter-state. Petitioner is a registered dealer in Iron & Steel, having their principal place of business at Vyttila, Kochi. Goods in question were purchased from Chennai on the strength of Ext.P4 invoice. From Ext.P3 certificate it is revealed that Advance Tax due on the goods under transport was already paid. Transport was accompanied by invoice as well as delivery note issued under the local sales tax Rules of Tamilnadu State in form JJ. The reason for detention mentioned in Ext.P5 notice issued under Section 47(2) of the Kerala Value Added Tax Act, 2003 (KVAT Act) is that, the vehicle was intercepted at Kanjikode, whereas destination address mentioned in the documents is that of the petitioner at Vyttila, Cochin. Since there is deviation from the main route and since the vehicle was seen at Kanjikode on 1.2.2009 at 10.50 Hrs: inspite of clearance from the check post at Walayar on 19.1.2009 at 22.37 Hrs:, bonafides of the transport was suspected and security deposit to the tune of Rs.36,360/- was demanded. W.P.(C).37617/09-V 2 2. According to the petitioner the goods were intended to the branch of the petitioner at Palakkad, existence of which is already declared and endorsed in the certificate of registration, copy of which is produced as Ext.P1. Since Advance Tax due on the goods had already been paid, there was no attempt at evasion of payment of tax, is the contention. 3. Since the adjudication contemplated under Section 47 has to be completed, I am of the view that merits regarding the reason of the detention need not be looked into at this stage. But the goods can be released pending finalisation of such adjudication on the petitioner furnishing proper security. 4. Therefore the writ petition is disposed of directing the 2nd respondent to release the goods detained under Ext.P5, along with the vehicle, on the petitioner furnishing Bank Guarantee for the sum of Rs.36,360/- demanded as security deposit. 5. The competent authority shall finalise the adjudication after affording an opportunity of hearing 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. okb