Krishna Novelty Stores Vs. the Intelligence Inspector - Court Judgment

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT: THE HONOURABLE MR.JUSTICE ANTONY DOMINIC MONDAY, THE 28TH DAY OF JANUARY 2013 8TH MAGHA 193 WP(C).No. 2392 of 2013 (Y) -------------------------- PETITIONER: -------------------- KRISHNA NOVELTY STORES, A PARTNERSHIP FIRM,BAZAR ROAD,MATTANCHERRY, COCHIN-682 002,REPRESENTED BY ITS PARTNER, R.RADHAKRISHNA KAMATH. BY ADV. SRI.A.KUMAR RESPONDENT(S): -------------------------- 1. THE INTELLIGENCE INSPECTOR, INTELLIGENCE SQUAD IV, DEPARTMENT OF COMMERCIAL TAXES, MALAPPURAM AT PERINTHALMANNA, CAMP AT WALAYAR CTCP-678 623.

2. COMMERCIAL TAX OFFICER, I CIRCLE,MATTANCHERRY,KOCHI-2. R1 & R2 BY SR.GOVERNMENT PLEADER SMT. SHOBA ANNAMMA EAPEN THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 28-01-2013, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: Kss WPC.NO.2392/2013 Y APPENDIX PETITIONER'S EXHIBITS: EXHIBIT-P1: TRUE COPY OF THE FRANCHISEE AGREEMENT ENTERED INTO BY THE PETITIONER WITH M/S.TREND LTD.DATED 12 7.2012. EXHIBIT-P2: TRUE COPY OF THE REGISTRATION CERTIFICATE DATED 25 6.2007. EXHIBIT-P3: TRUE COPY OF THE SHOP INSPECTION REPORT DATED 12 12.2012. EXHIBIT-P4: TRUE COPY OF THE INTIMATION GIVEN BY THE PETITIONER TO THE ASSESSING AUTHORITY DATED 19 12.2012. EXHIBIT-P5: TRUE COPY OF THE AUTHORIZATION GIVEN BY THE PRINCIPAL TO THE PARTNERS OF THE PETITIONER FIRM FOR TAKING OUT REGISTRATION DATED 20 11.2012. EXHIBIT-P6: TRUE COPY OF THE COMMUNICATION FROM THE SHOPPING MALL TO THE PRINCIPAL ACCEPTING THE FRANCHISEE APPOINTMENT DATED 18 12.2012. EXHIBIT-P7: TRUE COPY OF THE TAX INVOICE RAISED BY THE SUPPLIER DATED 14 1.2013. EXHIBIT-P7(a):TRUE COPY OF THE TAX INVOICE RAISED BY THE SUPPLIER DATED 15 1.2013. EXHIBIT-P8: TRUE COPY OF THE CERTIFICATE OF OWNERSHIP IN FROM NO.16 DATED NIL IN RESPECT OF INVOICE DATED 14 1.2013. EXHIBIT-P9: TRUE COPY OF THE NOTICE DATED 20 1.2013. EXHIBIT-P10: TRUE COPY OF THE REPLY FURNISHED BY THE PETITIONER DATED 21 1.2013. RESPONDENTS' EXHIBITS: N I L /TRUE COPY/ P.A.TO JUDGE Kss ANTONY DOMINIC, J ........................................ W.P.(C).2392/2013 .............................................. Dated this the 28th day of January, 2013 JUDGMENT Detention of a consignment of equipments as per Ext.P9 issued under Section 47(2) of the KVAT Act, is under challenge in this writ petition. The irregularity mentioned is that there was no convincing documentary evidence to prove that the petitioner is genuinely in need of such bulk quantity of goods for their own use.

2. Case of the petitioner is that the equipments were brought in pursuance to Ext.P1 agreement. Therefore, according to the petitioner, there is absolutely no justification for detention in question. The correctness or otherwise of the allegations, on the basis of which the consignment is detained, are matters for enquiry. Insofar as this case is concerned, the question is whether the detention pending such adjudication , is warranted or not.

3. Admittedly, petitioner is a dealer under the KVAT Act and the certificate of registration is Ext.P2. Taking note of this and W.P.(C).2392/13 2 also having regard to the irregularity mentioned and the contention of the petitioner, I direct that the consignment be released, subject to the petitioner executing a bond without sureties. Writ petition is disposed of as above. Sd/- ANTONY DOMINIC, JUDGE mrcs /true copy/ sd/- P.A. To Judge