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. 37577 of 2009(N) -------------------------- PETITIONER(S): --------------- KANNUR MEDICAL COLLEGE & SUPER SPECIALTY HOSPITAL, A UNIT OF PRESTIGE EDUCATIONAL TRUST, ANJARAKANDY, PO MAMBA, KANNUR DISTRICT, REPRESENTED BY AUTHORIZED SIGNATORY, SRI. M.A. HASHIM. BY ADVS. SRI.A.MOHAMED MUSTAQUE SRI.T.PRAVEEN RESPONDENT(S): --------------- 1. THE INTELLIGENCE OFFICER (SQ NO.VI) COMMERCIAL TAXES DEPARTMENT MANJESWAR, KASARGOD DISTRICT. 2. THE INSPECTING ASSISTANT COMMISSIONER (INTELLIGENCE) COMMERCIAL TAXES DEPARTMENT, KASARGOD DISTRICT. 3. THE COMMERCIAL TAX OFFICER, COMMERCIAL TAX OFFICE, MANJESWARAM, KASARGOD DISTRICT. 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. 37577 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 equipments transported interstate, on issuing Ext.P4 notice under Section 47 (2) of the Kerala Value Added Tax Act, 2003 (KVAT Act). According to the petitioner the goods under transport was intended to be installed at the Medical College at Kannur, owned by the petitioner. The detention was on the ground that, it is not ascertainable from the documents which accompanied the transport as to whether the consignee is authorized to effect inter-state purchase of these goods, and there was no documents accompanied with the transport to prove that the goods are for own use. It is also suspected that the consignment is for the purpose of using in execution of works contract. 2. However, the question as to whether there was any attempt at evasion of payment of tax, need be decided only in the adjudication to be finalised. Pending such W.P.(C)No. 37577 of 2009 -2- adjudication, I am of the opinion that, the goods can be released on the petitioner furnishing proper security. 3. Therefore the writ petition is disposed of directing the 2nd respondent to release the goods along with the vehicle which is detained under Ext.P4 on condition of the petitioner making payment of 50% of the amount demanded under Ext.P4, towards Advance Tax without prejudice to finalisation of the proceedings under Section 47 and without prejudice to imposition of penalty, if ultimately found liable, and on furnishing Security Bond in the form prescribed under KVAT Rules, without sureties, for the balance 50%. 4. The competent authority under Section 47 is directed to finalise the adjudication proceedings at earliest after affording opportunity of hearing to the petitioner, at any rate within a period of one month from the date of release of the goods. C.K. ABDUL REHIM JUDGE shg/