Kerala High Court
Sunrise Institute Of Medical Sciences ... vs Intelligence Inspector on 21 April, 2012
Author: P.R. Ramachandra Menon
Bench: P.R.Ramachandra Menon
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT:
THE HONOURABLE MR.JUSTICE P.R.RAMACHANDRA MENON
WEDNESDAY, THE 20TH DAY OF JUNE 2012/30TH JYAISHTA 1934
WP(C).No. 14129 of 2012 (M)
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PETITIONERS:
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SUNRISE INSTITUTE OF MEDICAL SCIENCES PVT LTD
SEAPORT AIRPORAT ROAD, MAVELIPURAM, KAKKANAD
KOCHI-68230 - REPRESENTED BY ITS MANAGING DIRECTOR
MS. PRAVEEN HAFEEZ
BY ADVS.SRI.S.ANIL KUMAR (TRIVANDRUM)
SRI.K.S.HARIHARAN NAIR
SRI.K.UMAMAHESWAR
RESPONDENT(S):
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1. INTELLIGENCE INSPECTOR, SQUARD NO. I,
COMMERCIAL TAXES, MATTANCHERRY, MINI
CIVIL STATION, ALUVA-683101
2. COMMERCIAL TAX OFFICER
2ND CIRCLE KALAMASERY, ERNAKULAM KOCHI- 6820
BY SENIOR GOVERNMENT PLEADER MS. SHOBA ANNAMMA EAPEN
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 20-
06-2012, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
W.P(c) NO. 14129 OF 2012
APPENDIX
PETITIONER(S) EXHIBITS
EXT.P1(A):- COPY OF PURCHASE ORDER DTD 21/4/2012
EXT.P1(B):- COPY OF INVOICE DTD 31/5/2012
EXT.P1(C):- COPY OF BILL OF ENTRY DTD 7/6/2012
EXT.P2:- COPY OF DECLARATION IN FORM 8F
EXT.P3:- COPY OF NOTICE DTD 14/6/2012 OF THE IST RESPONDENTS
EXT.P4:- COPY OF REPLY DTD 15/6/2012 & FORM 16(COLLECTIVELY)
RESPONDENTS' EXHIBITS : NIL
/TRUE COPY/
P.A. TO JUDGE
P.R. RAMACHANDRA MENON J.
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W.P(C) No. 14129 of 2012
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Dated, this the 20th day of June, 2012
JUDGMENT
The petitioner, who is a registered dealer under the provisions of the KVAT Act, on the rolls of the second respondent, is running a hospital at Ernakulam. With an intent to enhance the infrastructure facilities of the hospital, the petitioner imported one 'Ventilator' from France as per Ext. P1(a) invoice, which was sought to be brought through the Cochin International Airport. Immediately on arrival of the goods, it was declared 'on-line' before the concerned authorities by submitting Ext. P2 declaration under Section 46 (3) (e). Thereafter, the goods were being transported in the vehicle bearing No. KL07 BB 5072, on the strength of Exts. P1
(a) purchase order, P1 (b) invoice, P1 (c) bill of entry and P2 declaration, when it was intercepted by the first respondent on the same day i.e. on 14.06.2012, issuing Ext. P3 notice under Section 47(2) of the KVAT Act, doubting evasion of tax W.P.(C) No. 14129 of 2012 : 2 : and demanding security deposit to an extent of Rs. 9,34,200/-.
2. The insinuating circumstances as given in Ext. P3 notice are as given below :
"The vehicle with goods was intercepted at Nedumpassery road, near Athani. On verification, it is found that the goods are life saving equipment ventilator extent X 7 - X T 1707, 1709, 1710, 1708, 1711 (5 Nos.), the following defects was pointed out during verification.
1. The goods was imported via Airport Nedumpasserry Cochin. The goods was not declared as per section 46 (3) (e) of KVAT Act 2003.
2. The goods was declared in Form No. 8F as medical/surgical equipments & spares including bandages ganger etc. But on physical verification it is found that goods was ventilators.
3. The goods was imported from Air liquid medical systems, Pasc-de-hante technologies, 6 rue Georges Besse, 92182 Antony Cedex France to M/s Sunrise Institute of Medical Services (P) Ltd. , Seaport Airport Road, Kochi. No Form 16 is supported to prove that this is for own use.
4. As per the purchase order dated 21.04.2012 of the Hospital, it is seen that this is a supply & installation W.P.(C) No. 14129 of 2012 : 3 : contract. The supplier Air Liquid Medical Systems (P) Ltd. is not a registered dealer under KVAT Act. Since this is a sophisticated equipments, expert technique is required for installation. This will be done by the service providers. The suppliers is not a registered dealer under the provisions of works contract Act of KVAT Act 2003. Hence....."
Immediately on receipt of Ext. P3, the petitioner preferred Ext. P4 reply on the very next day with such other relevant materials and explaining the transparency in the consignment and transportation. However, the first respondent was not ready to have the goods released, which made the petitioner to approach this Court by filing the present writ petition.
3. The learned Government Pleader appearing for the respondents submits that there was 'mis-description' of goods, in so far as in the relevant document, it was described as 'medical equipment'; whereas on physical verification, it appeared to be 'ventilator'. On going through the materials on record, this Court finds that, the petitioner has declared the item as medical/surgical equipment and spares and that a 'Ventilator' which is to be used in the hospital cannot stand on W.P.(C) No. 14129 of 2012 : 4 : different pedestal. In what way the petitioner hospital attempted to evade the tax, is a matter to be enquired into or established in the course of the adjudication proceedings. But, for that matter, there is no necessity to detain the goods any further and the same shall be released to the petitioner, on executing a 'simple bond' without sureties for the amount shown in Ext. P3 notice. As mentioned hereinbefore, this will be without prejudice to the rights and liberties of the respondents to pursue the adjudication proceedings, which shall be finalized in accordance with law, as expeditiously as possible.
The Writ Petition is disposed of.
Sd/ P. R. RAMACHANDRA MENON, (JUDGE) kmd