Full Judgment
IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT: THE HONOURABLE MR.JUSTICE P.R.RAMACHANDRA MENON FRIDAY, THE21T DAY OF FEBRUARY20142ND PHALGUNA, 1935 WP(C).No. 5256 of 2014 (F) --------------------------- PETITIONER : ---------- M/S.CHEERANS STRUCTURALS, ENGINEERS & CONTRACTORS CHALISSERY P.O., PALAKKAD, REPRESENTED BY ITS MANAGING PARTNER, SHIRLON MATHEW. BY ADVS.SRI.N.MURALEEDHARAN NAIR SRI.V.K.SHAMUSUDHEEN RESPONDENT : ---------- THE INTELLIGENCE INSPECTOR SQUAD NO. I, COMMERCIAL TAXES, KOLLAM - 691002. BY SENIOR GOVERNMENT PLEADER SMT. SHOBA ANNAMMA EAPEN THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON2102-2014, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: BP WP(C).No. 5256 of 2014 (F) APPENDIX PETITIONER'S EXHIBITS : P1: COPY OF THE REGISTRATION CERTIFICATE DT179/2007. P2: COPY OF THE INVOICE NO.SCS - 7515 DT192/2014. P3: COPY OF THE NOTICE NO. OR. 1609/2013-14 ISSUED BY THE RESPONDENT UNDERR SECTION472) AND (4) OF THE KVAT ACT DT202/2014. p4: COPY OF THE RETURN FILED BY THE PETITIONER FOR THE PERIOD FROM110/2013 TO3112/2013 DT202/2014. RESPONDENT'S EXHIBITS : NIL. //TRUE COPY// P.A. TO JUDGE BP P.R. RAMACHANDRA MENON, J.
--------------------------------------- W.P.C. No.5256 OF2014--------------------------------------- Dated this the 21st day of February, 2014. JUDGMENT
The petitioner is aggrieved of the detention of goods brought by him (on the strength of Ext.P2 Invoice), which was detained by the respondent/Intelligence Inspector issuing Ext.P3 notice under Section 47(2) and Section 47(4) of the KVAT Act doubting evasion of tax and demanding security deposit as specified therein which made the petitioner to approach this Court by filing the writ petition.
2. The learned Government Pleader appearing for the respondent submits on instructions and with reference to the materials on record that, on verification it is seen that consignee, the work contractor is not filed the quarterly return for the quarter ending 31st December, 2013 even after the stipulated time is over, a clear violation of statutory provisions contained in Section 20 of the KVAT Act, 2003 and Rule 24 of KVAT Rule, 2005 for which analysis provided under Circular 5 of 2013 is warranted and hence the goods were detained in tune with the relevant provisions of law, leading to the impugned notices, W.P.C. No.5256 OF2014-2- doubting evasion of tax, and demanding security deposit.
3. After hearing both the sides, this Court finds that this is a matter which requires to be finalized by way of adjudication proceedings under Section 47(6) of the KVAT Act. But, for that reason, the goods need not be detained and the same shall be released to the petitioner forthwith, on satisfying 25% of the security deposit demanded vide Ext.P3 and on executing a 'simple bond' without sureties for the balance amount. This however shall be without prejudice to the rights and liberties of the respondent/competent authority to proceed with the adjudication proceedings, which shall be finalized in accordance with law, as expeditiously as possible at any rate, within 'three months' from the date of receipt of a copy of this judgment. The petitioner shall produce a copy of the judgment along with a copy of the writ petition before the first respondent for further steps. The writ petition is disposed of. P.R. RAMACHANDRA MENON, JUDGE. sp