Judgment:
IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT: THE HONOURABLE MR.JUSTICE P.R.RAMACHANDRA MENON MONDAY,THE31T DAY OF MARCH201410TH CHAITHRA, 1936 WP(C).No. 9371 of 2014 (V) --------------------------- PETITIONER : -------------------------- JOY ALUKKAS INDIA PVT. LTD., PALACE ROAD, THRISSUR. BY ADV. SRI.A.KUMAR RESPONDENT ---------------------------- INTELLIGENCE INSPECTOR, OFFICE OF THE INTELLIGENCE SQUAD NO.II, MATTANCHERY AT KARUKUTTY. BY SR GOVERNMENT PLEADER SMT. SHOBA ANNAMMA EAPEN THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON3103-2014, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: sts WPC.NO.9371/2014 APPENDIX PETITIONER'S EXHIBITS: P1 COPY OF THE STOCK TRANSFER FORM DATED143/2014 P1(A) COPY OF THE STOCK TRANSFER FORM DATED263/2014 P2 COPY OF THE FORM JJ DATED1403/2014 P2(A) COPY OF THE FORM JJ DATED2603/2014 P3 COPY OF THE FORM8FA DECLARATION DATED263/2014 P3(A) COPY OF THE FORM8FA DECLARATION DATED263/2014 P4 COPY OF THE NOTICE DATED2703/2014 P5 COPY OF THE REPLY FILED BY THE PETITIONER DATED NIL RESPONDENT'S EXHIBITS: NIL /TRUE COPY/ P.S.TO.JUDGE sts P.R. RAMACHANDRA MENON, J.
.............................................................................. W.P.(C)No.9371 OF2014......................................................................... Dated this the 31st March , 2014
JUDGMENT
The petitioner, who is a Company registered under the Companies Act and and is a registered dealer under the KVAT and CST Acts, is engaged in the business of gold, jewellery and diamonds. In connection with the business, the petitioner effected transportation of 21262.350 gms of silver by way of stock transfer from Chennai to Thrissur. It is stated that the transportation was accompanied by Form JJ delivery note and declaration in Form 8FA. The petitioner is aggrieved of detention of the goods with the vehicle by the respondent/Intelligence Inspector, as per Ext.P4 dated 27.03.2014 issued under Section 47(2) of the KVAT Act, suspecting evasion of tax and demanding Security deposit. The reasons for detention of the vehicle and goods as stated in Ext. P4 are as follows: "As per the document accompanied, the goods are transported from Chennai to Thrissur by Air through CIAL, Nedumabassery. The vehicle with goods intercepted and checked at Nedumbassery on 27.03.2014 at 10.55 hrs while plying towards W.P.(C)No.9371 OF20142 Athani side. The declaration in Form No.8FA accompanied with the consignment is predated i.e. 26.03.2014. Moreover, the vehicle number and driver details are not mentioned in the form 8FA. Hence multiple transaction of the goods under the cover of the same document and thereby evasion of tax is suspected.." It is contended that, when the goods are covered by proper departmental delivery notes, there is absolutely no rhyme or reason to suspect evasion of tax and that the alleged defect is only technical.
2. The prayer of the petitioner is sought to be resisted by the learned Sr.Government Pleader appearing for the respondents stating that there is clear violation of statutory provisions. But for the detention, the lapse on the part of the petitioner would not have been brought to light and as such, the petitioner is not entitled for the benefit of the proviso to Section 47(2) of the KVAT Act.
3. After hearing both the sides, this Court finds that the correctness of the facts and circumstances can be brought out only by adjudication proceedings under Section 47(6) of the W.P.(C)No.9371 OF20143 KVAT Act. However, for that reason, the goods and the vehicle need not be detained any further and that the same can be released to the petitioner on satisfaction of 25% of the security demanded, as per Ext.P4 and on furnishing 'simple bond' for the balance amount. The adjudication proceedings shall be finalised by the competent authority in accordance with law, as expeditiously as possible, at any rate, within three months from the date of receipt of a copy of the judgment. The petitioner shall produce a copy of the judgment along with a copy of the writ petition before the respondent /Intelligence Inspector/or the competent authority for further steps. The writ petition is disposed of. P.R.RAMACHANDRA MENON JUDGE lk