Kerala High Court
M/S.Kitex Ltd vs The Commercial Tax Inspector on 22 December, 2015
Author: A.K.Jayasankaran Nambiar
Bench: A.K.Jayasankaran Nambiar
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT:
THE HONOURABLE MR. JUSTICE A.K.JAYASANKARAN NAMBIAR
TUESDAY,THE 5TH DAY OF JANUARY 2016/15TH POUSHA, 1937
WP(C).No. 246 of 2016 (E)
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PETITIONER :
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M/S.KITEX LTD.,
KIZHAKKAMBALAM, ALUVA, ERNAKULAM,
REP. BY CHAIRMAN AND MANAGING DIRECTOR.
BY ADVS.SRI.ANIL D. NAIR
SRI.R.SREEJITH
SMT.O.A.NURIYA
KUM.SOUMYA PRAKASH
KUM.MEKHALA M.BENNY
RESPONDENT :
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THE COMMERCIAL TAX INSPECTOR,
COMMERCIAL TAX CHECK POST,
WALAYAR-678 001.
BY GOVERNMENT PLEADER SMT. LILLY.K.T.
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION
ON 05-01-2016, THE COURT ON THE SAME DAY DELIVERED THE
FOLLOWING:
sts
WP(C).No. 246 of 2016 (E)
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APPENDIX
PETITIONER(S)' EXHIBITS
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EXHIBIT P1: TRUE COPY OF THE INVOICE DATED 22.12.2015.
EXHIBIT P2: TRUE COPY OF THE TRANSACTION SLIP.
EXHIBIT P3: TRUE COPY OF THE NOTICE DATED 28.12.2015 ISSUED BY THE
RESPONDENT.
RESPONDENT(S)' EXHIBITS: NIL
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/TRUE COPY/
P.A.TO JUDGE
sts
A.K.JAYASANKARAN NAMBIAR, J.
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W.P.(C).No.246 of 2016
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Dated this the 5th day of January, 2016
JUDGMENT
A consignment of diaries, that was being transported at the instance of the petitioner was detained by the respondents. Ext.P3 is the detention notice. In the writ petition, the petitioner is aggrieved by the insistence of the respondents that the petitioner must pay the security deposit demanded in the detention notice as a condition for release of the goods and vehicle.
2. I have heard the learned counsel appearing for the petitioner and also the learned Government Pleader appearing for the respondent.
3. On a consideration of the facts and circumstances of the case as also the submissions made across the bar, I dispose the writ petition with the following directions: W.P.(C) No. 246/2016 2
(i) On a perusal of Ext.P3 notice, it is seen that the objection of the respondent is essentially with regard to the classification of the item for the purposes of tax. It is pointed out that in the Form 8F declaration, the commodity was shown as paper and paper products, whereas on physical inspection, it was seen to be diaries which attracted a higher rate of tax. Counsel for the petitioner would submit that the invoice that accompanied the transportation of the goods clearly showed the items as hand-books and the same were meant for the own use of the petitioner for free distribution. It is also pointed out that the petitioner is a registered dealer and the transportation was otherwise in compliance with the provisions of the KVAT Act. Taking note of the said submission of counsel for the petitioner, I direct the respondent to release the goods covered by Ext.P3 detention notice, to the petitioner, on the petitioner furnishing a simple bond without sureties for the security deposit amount demanded in Ext.P3 detention notice.
(ii) The respondent shall thereafter transmit the files to the adjudicating authority who shall adjudicate the matter and pass orders, after W.P.(C) No. 246/2016 3 hearing the petitioner, within two months from the date of receipt of a copy of this judgment.
(iii) The petitioner shall produce a copy of this judgment and a copy of the writ petition before the respondent.
sd/-
A.K.JAYASANKARAN NAMBIAR
jv JUDGE