IN THE HIGH COURT OF KERALA AT ERNAKULAM
WP(C) No. 34791 of 2007(P)
1. M/S. XEROX INDIA LTD.,
... Petitioner
Vs
1. THE INTELLIGENCE INSPECTOR,
... Respondent
2. THE ASSISTANT COMMISSIONER,
For Petitioner :SRI.A.KUMAR
For Respondent : No Appearance
The Hon'ble MR. Justice ANTONY DOMINIC
Dated :26/11/2007
O R D E R
ANTONY DOMINIC, J
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W.P.(C).34791/2007
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Dated this the 26th day of November, 2007
JUDGMENT
The goods manufactured and transported by the
petitioner is under detention and Ext.P3 is the notice of
detention. It is stated that the value adopted for the
machine is Rs.2,71,506/- but on physical varification of
the printer, the MRP shown in the box was Rs.7,15,681/-
and which indicated a difference of Rs.4,44,175/-. On
this basis, it is stated that the consignee had colluded
with the consignor and is attempting to evade tax
resorting to under valuation.
2. Learned counsel for the petitioner would submit that
it is a case of stock transfer and therefore there is no
question of any tax evasion. It is also contended that
while the sale price is determined by market prices,
MRP is declared only for other purposes including
taxation. Therefore, contention is that difference is
nothing but natural. It is also contended that the Officer
in the check post had no authority to detain the goods in
W.P.(C).34791/2007
2
as much as Section 45(d) has no application for stock
transfer.
3. Primafacie I am not satisfied with the contentions
raised. The contention that MRP is totally unrelated with
the actual sale price and the argument that the check
post authority had no right to detain the goods are
required to be adjudicated. Accordingly, I am not
inclined to direct that the goods shall be released as
prayed for in this writ petition. However, if the
petitioner furnishes Bank guarantee, the goods may be
released. Thereafter adjudication shall continue.
Writ petition is disposed of as above.
ANTONY DOMINIC
Judge
mrcs