Kerala High Court
Alleppey Co.Ltd vs Intelligence Inspector on 11 December, 2013
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
TUESDAY, THE 18TH DAY OF MARCH 2014/27TH PHALGUNA, 1935
WP(C).No. 7667 of 2014 (G)
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PETITIONER(S):
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1. ALLEPPEY CO.LTD.,
POST BOX NO.2602, TAC HOUSE, NORTH VADAI CANAL ROAD,
ALLEPPEY 688 007. (REPRESENTED BY THE CHIEF FINANCE OFFICER
JOHN MATHEW).
2. MASTER TOUCH,
ASRAMAM WARD, ALLEPEY,
(REPRESENTED BY PROPRIETOR P.V.SHAJI)
3. M/S. CHERKOTTU FURNISHING,
BYE- PASS ROAD, THODUPUZHA,
REPRESENTED BY PROPRIETOR C.J.THOMAS)
4. M/S.OBEE TEEE TEXTILES PVT. LTD.,
PLOT NO.1 A, SECTOR-2, IIE PANT NAGAR,
RUDRAPURE DIST,
UTTARAKHANT WITH BRANCH OFFICE AT PANANPILLY NAGAR,
KOCHI -36 (REPRESENTED BY R.SANTHOSH,
AUTHORISED SIGNATORY).
BY ADVS.SRI.K.N.SREEKUMARAN
SRI.P.D.UNNIKKANNAN NAIR
RESPONDENT(S):
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1. INTELLIGENCE INSPECTOR,
SQUAD NO.I, COMMERCIAL TAXES,
MATTANCHERRY AT ALUVA MINI CIVIL STATION,
ALUVA - 683 101.
2. STATE OF KERALA,
REPRESENTED BY SECRETARYTO GOVERNMENT,
TAXES DEPARTMENT, GOVERNMENT SECRETARIAT,
THIRUVANANTHAPURAM - 695 001.
R1 & R2 BY SR.GOVERNMENT PLEADER SHOBA ANNAMMA EAPEN
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION
ON 18-03-2014, THE COURT ON THE SAME DAY DELIVERED THE
FOLLOWING:
Kss
WP(C).No. 7667 of 2014 (G)
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APPENDIX
PETITIONER(S)' EXHIBITS:
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EXT.P1: TRUE COPY OF THE INVOICE NO.INO1/13-14/1895 DATED 11/12/2013
ISSUED BY 4TH PETITIONER TO THE 1ST PETITIONER.
EXT.P2: TRUE COPY OF THE RELEVANT EXTRACT OF FORM 8F DECLARATIONS
UPLOADED BY M/S.O.M.LOGISTICS ACCOMPANYING THE TRANSPORT.
EXT.P3: TRUE COPY OF THE NOTICE NO.OR 2368/13-14 DTD. 15/01/2014 ISSUED
BY 1ST RESPONDENT TO 1ST PETITIONER.
EXT.P4: TRUE COPY OF THE REPLY DTD. 22/01/2014 FILED BY 1ST PETITIONER
BEFORE 1ST RESPONDENT.
EXT.P5: TRUE COPY OF THE INVOICE NO.INOI/13-14/2068s DTD. 31/12/2013
ISSUED BY 4TH PETITIONER TO THE 2ND PETITIONER.
EXT.P6: TRUE COPY OF THE NOTICE NO.OR 2369/13-14 DTD. 15/01/2014 ISSUED
BY 1ST RESPONDENT TO 2ND PETITIONER.
EXT.P7: TRUE COPY OF THE REPLY DTD. 31/01/2014 FILED BY 2ND PETITIONER
BEFORE 1ST RESPONDENT.
EXT.P8: TRUE COPY OF THE INVOICE NO.INOI/13-14/2040 DTD. 28/12/2013 & 1952
DTD. 18/12/2013 ISSUED BY 4TH PETITIONER TO THE 3RD PETITIONER.
EXT.P9: TRUE COPY OF THE RELEVANT EXTRACTS OF FORM 8F
DECLARATIONS UPLOADED BY M/S.O.M.LOGISTICS ACCOMPANYING THE
TRANSPORT.
EXT.P10: TRUE COPY OF THE INVOICE NO.OR 2367/13-14 DTD. 15/01/2014
ISSUED BY 1ST RESPONDENT TO 3RD PETITIONER.
EXT.P11: TRUE COPY OF THE REPLY DTD. 1/02/2014 FILED BY 3RD PETITIONER
BEFORE 1ST RESPONDENT.
RESPONDENT(S)' EXHIBITS:
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/TRUE COPY/
P.A.TO JUDGE
Kss
P.R. RAMACHANDRA MENON J.
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W.P.(C) No. 7667 of 2014
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Dated, this the 18th day of March, 2014
JUDGMENT
The petitioners 1 to 3 are registered dealers both under the Kerala Value Added Tax Act 2003 and the Central Sales Tax Act, and are engaged inter alia in the business of non-woven fabrics. It is stated that the petitioners used to purchase non-woven fabrics from the 4th petitioner. Accordingly, as part of regular supplies, the 4th petitioner sent consignments of non-woven fabrics to the petitioners 1 to 3, vide Exts. P1, P5 and P8 invoices respectively. While the goods were being carried in the vehicles, they were intercepted by the first respondent issuing Exts. P3, P6 and P10 notices under Section 47 (2) of the KVAT Act, doubting evasion of tax and demanding security deposit to the extent as specified therein, which made the petitioners to approach this Court for immediate intervention.
2. The learned counsel for the petitioners submits that, absolutely no offence has been committed by the petitioners and that there was no attempt on the part of the petitioners to evade tax. It is stated that the objections raised by the respondents are of W.P.(C) No. 7667 of 2014 : 2 : technical in nature and that the goods were transported after filing 8F declaration.
3. The learned Government Pleader submits that the goods were detained doubting genuineness of the documents supported the transaction, based on the insinuating circumstances, as noted in the Ext. P3 notice, which are in the following terms :
"The goods under transport was brought from outside Kerala and transported through 'OM Logistics' Ernakulam. On physical verification of the goods at the godown of OM Logistics, it is ascertained tht the goods are not 'cotton fabrics' as declared by the consignee in 8F declaration and the same is furnishing materials attracting tax @ 14.05 %. Hence evasion of payment of tax and transportation of goods are suspicious. Hence S/D demanded."
Almost similar contentions are raised in Exts. P6 and P10 notices as well.
4. Considering the facts and circumstances, this Court finds that the correct factual position can be unearthed only in the course of adjudication proceedings. But for that reason, the goods need not be detained any further and the same shall be released to the petitioners 1 to 3, on condition that, the petitioners 1 to 3 satisfy 50 % of security demanded vide Exts. P3, P6 and P10 W.P.(C) No. 7667 of 2014 : 3 : notices respectively and furnish 'Simple Bonds' for the balance amount. 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, at any rate, within three months from the date of receipt of a copy of this judgment.
The petitioners shall produce a copy of this judgment along with copy of the writ petition before the first respondent for further steps.
The Writ Petition is disposed of.
Sd/-
P. R. RAMACHANDRA MENON, (JUDGE) kmd