Judgment:
IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT: THE HONOURABLE MR.JUSTICE P.R.RAMACHANDRA MENON TUESDAY, THE1T DAY OF APRIL201411TH CHAITHRA, 1936 WP(C).No. 8505 of 2014 (K) -------------------------------------- PETITIONER(S): ---------------------- PACSMART SOLUTIONS PVT.LTD, FLAT9 3RD FLOOR, VGP MURPH SQUARE BUILDING, ST. THOMAS MOUNT, ALANDUR, CHENNAI60001, REPRESENTED BY T. SENTHILNATHAN, ACCOUNTS EXECUTIVE. BY ADVS.SRI.JOSE JOSEPH SRI.AJAY V.ANAND RESPONDENT(S): ------------------------- 1. THE INTELLIGENCE INSPECTOR, SQUAD NO V, DEPARTMENT OF COMMERCIAL TAXES, ERNAKULAM COCHIN.
2. ASTER DM HEALTH CARE PVT, ASTER MEDICITY, KUTISHIB ROAD, NEAR KOTHAD BRIDGE, SOUTH CHITTOOR P.O, CHERANALLOOR, KOCHI68202. R1 BY SENIOR GOVERNMENT PLEADER SMT.SHOBA ANNAMMA EAPEN THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON0104-2014, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: PJ WP(C).No. 8505 of 2014 (K) --------------------------------------- APPENDIX PETITIONER(S)' EXHIBITS ------------------------------------- EXHIBIT P1 TRUE COPY OF THE PURCHASE ORDER
DATED1402-2014 BY THE2D RESPONDENT EXHIBIT P2 TRUE COPY OF THE PETITIONER'S TAX INVOICE DATED2202-2014 EXHIBIT P3 TRUE COPY OF THE NOTICE DATED2402-2014 ISSUED BY THE IST RESPONDENT UNDER SEC472) OF THE KVAT ACT EXHIBIT P4 TRUE COPY OF THE LETTER DATED0703-2014 FROM2D RESPONDENT TO THE IST RESPONDENT EXHIBIT P5 TRUE COPY OF THE CERTIFICATE OF OWNERSHIP IN FORM NO16ISSUED BY THE2D RESPONDENT RESPONDENT(S)' EXHIBITS --------------------------------------- NIL. / TRUE COPY / P.S. TO JUDGE PJ P.R. RAMACHANDRA MENON, J.
======================== W.P.(C). No. 8505 of 2014 -------------------------------------------- Dated this the 1st day of April, 2014 JUDGMENT
The case of the petitioner is that, in the course of transit of medical accessories to the concerned hospital pursuant to Ext.P1 purchase order placed by the second respondent, on the strength of Ext.P2 invoice, the same was intercepted by the first respondent issuing Ext.P3 notice under Section 47(2) of the Kerala Value Added Tax Act, 2003. The learned counsel for the petitioner submits that the detention is per se wrong and unsustainable in all respects and hence the writ petition.
2. Heard the learned Government Pleader as well, who submits that the transportation was not supported with the proper documents as contemplated under 46(3) of the KVAT Act. The insinuating circumstances as shown in Ext.P3 notice are in the following terms: "On verification of the documents accompanied the consignment, it is found that consignee has no registration under KVAT Act 2003. Also consignment under dispute was not declared through online 8F/8FA and thus violated Rule 66(6) and 66(6)(ba) of the KVAT Rule 2005." It is also pointed out that the petitioner is not a registered dealer W.P.C. No. 8505 of 2014 -2- and that the version of the petitioner that the actual rate of tax applicable is only 5% is not correct, as different commodities attract different rates as given in the relevant schedule.
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 furnishing Bank Guarantee for the requisite amount as demanded in Ext.P3. 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 concerned respondent for further steps. Writ petition is disposed of. P.R. RAMACHANDRA MENON, JUDGE. kp/-