IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM TUESDAY, THE 12TH OCTOBER 2010 / 20TH ASWINA 1932 WP(C).No. 31206 of 2010( A) -------------------------- PETITIONER: --------------- M/S.WHIRLPOOL OF INDIA LTD., BLDG.NO.XVIII/10A,ST.JOSEPH'S MINOR SEMINARY, COCHIN UNIVERSITY SOUTH KALAMASSERY, COCHIN-PIN 682 022, REP.BY IT'S BRANCH COMMERCIAL MANAGER MR.ASHOK .P. BY ADV. SMT.K.LATHA RESPONDENTS: ---------------------- 1. STATE OF KERALA REPRESENTED BY SECRETARY TO MINISTRY OF FINANCE, GOVERNMENT OF SECRETARIAT,TRIVANDRUM-1. 2. INTELLIGENCE INSPECTOR, SQUAD NO.1, COMMERCIAL TAXES, ALAPPUZHA-1. 3. ASSISTANT COMMISSIONER (ASSMT), SPECIAL CIRCLE-II, ERNAKULAM-19. BY SENIOR GOVERNMENT PLEADER, SRI.C.K.GOVINDAN THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 12/10/2010, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: VK C.K.ABDUL REHIM, J --------------------------- W.P(C) No.31206 of 2010-A ---------------------------- Dated this the 12th day of October, 2010. J U D G M E N T The petitioner is a Public Limited Company and is a registered dealer on the rolls of third respondent. Petitioner is aggrieved by detention of 250 numbers of Dinner Sets transported from Cochin to Alappuzha. According to the petitioner goods under transport was intended to be given as free gifts for customers who purchase various home appliances manufactured by the petitioner. The transport was accompanied by Ext.P3 letter issued by the petitioner. Ext.P3 which will indicate that the goods are intended for the purpose of giving as customer gifts. 2. In Ext.P4 notice, the reason for detention mentioned is that, going by letter issued by the petitioner the goods are intended to be given as free gifts to the customers for the period from 1st July 201 to 15th September 2010, but it is noticed that consignment was effected much after the period prescribed. Therefore it is observed that the consignment was not supported by the valid document and suspecting that the goods are intended for sale by evading payment W.P(C) No.31206 of 2010-A 2 of tax, security deposit was demanded. 3. The petitioner had produced various documents such as invoices pertaining to the transport, letter issued by the petitioner (Ext.P3) and brochure published by the petitioner containing offer of gifts etc. It is contended that the dinner sets were despatched on a date after the stipulated period, only because the gifts were not available during the relevant period. It is further stated that the transport was effected to the dealers for distribution of the items to those who purchased Home Appliances during the relevant period. 4. Learned Government Pleader on the other hand contended that there is misquoting of price in the invoice and the letter issued by the petitioner was not inconformity with the purpose mentioned therein. Since the transport was not accompanied by proper documents, the suspicion expressed regarding evasion in payment of tax, is quite reasonable. 5. The question whether there was any attempt in evasion of payment of tax is a matter which need be decided on finalising the enquiry, I am of the opinion that pending finalisation of the enquiry, the goods can be released on the petitioner furnishing W.P(C) No.31206 of 2010-A 3 security. 6. In the result, the writ petition is disposed of directing the second respondent to release the goods along with the vehicle, which was detained under Ext.P4 notice, on the petitioner furnishing security bond in the form prescribed under the KVAT Rules without sureties for the value demanded under Ext.P4. 7. The competent authority is directed to expedite the enquiry and to finalise the same after affording an opportunity of hearing to the petitioner, at the earlies possible, at any rate within a period of six weeks from the date of release of the goods. Sd/- C.K.ABDUL REHIM JUDGE //True Copy// P.A to Judge ab