High Court Kerala High Court

M/S.Hsil Ltd vs The Commercial Tax Officer on 15 September, 2010

Kerala High Court
M/S.Hsil Ltd vs The Commercial Tax Officer on 15 September, 2010
       

  

  

 
 
  IN THE HIGH COURT OF KERALA AT ERNAKULAM

WP(C).No. 28279 of 2010(H)


1. M/S.HSIL LTD.,
                      ...  Petitioner

                        Vs



1. THE COMMERCIAL TAX OFFICER,
                       ...       Respondent

2. THE INTELLIGENCE INSPECTOR,

                For Petitioner  :SRI.R.RAMADAS

                For Respondent  : No Appearance

The Hon'ble MR. Justice C.K.ABDUL REHIM

 Dated :15/09/2010

 O R D E R
                        C.K. ABDUL REHIM, J
                         ------------------------------
                     WP(C) NO. 28279 OF 2010
                      ------------------------------------
             Dated this the 15th day of September, 2010


                                JUDGMENT

Petitioner is aggrieved by detention of wooden racks transported

from Mangalore to Cochin, and by issuance of Ext.P3 notice by the

second respondent under Section 47 (2) of the Kerala Value Added Tax

Act. It is submitted that the goods under transport are wooden display

boards (display stands), which were taken from Cochin to Mangalore in

connection with an Architects’ Meet which was held there on

20.08.2010. The stands were intended for displaying sanitary items

dealt with by the petitioner. It is contended that the goods were

transported on the strength of declaration in Form No. 27 B of the

Kerala General Sales Tax Act and it was transported after declaring the

goods at the boarder check post at Manjeswar. The goods were

detained while taking back, after the exhibition, at Neeleshwar.

2. On a perusal of Ext.P3, it is evident that the reason for

detention is that the Form No. 27 B used was not valid and the materials

displayed were not available, but only the display stands were

transported. Further it is noticed that the price displayed on one of such

stands is Rs.23,400/-. But the materials were not seen declared at any

of the entry check posts.

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3. It is the contention of the petitioner that only the wooden

display stands alone were transported and the sanitary wares for display

were taken from their dealers at Mangalore. It is further contended that

Form No. 27 B declaration which accompanied the transport was also

supported by letter issued by the petitioner mentioning that the goods were

carried only for the purpose of display of items at the Meet conducted at

Mangalore. According to the petitioner, genuineness of transport can be

evaluated from the documents which bears endorsements made by the

boarder check posts.

4. Through Ext.P3, security deposit to the tune of Rs.88,630/-

was demanded. According to the petitioner, the wooden display stands

transported are not having any value worth that mentioned in Ext.P4.

Hence the petitioner is seeking direction to expedite the enquiry and to

finalise the matter. He is also seeking direction for release of the vehicle,

pending finalisation of the enquiry, since there is no proceedings is initiated

against the vehicle.

5. Learned Government Pleader, on the basis of instruction,

submitted that apart from the proceedings initiated under Section 47 (2), no

steps has been taken against vehicle in question. Therefore I am of the

opinion that the vehicle can be released to the petitioner making

arrangements for unloading the display stands. The competent authority

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can be directed to finalise the proceedings after release of the vehicle on

completing enquiry as contemplated under the statute.

6. Therefore, the Writ Petition is disposed of directing the second

respondent to permit release of the vehicle, on the petitioner making

arrangements for unloading and stocking of the materials carried therein.

The vehicle shall be released without any further delay as and when

approach is made by the petitioner.

7. The competent enquiry officer is directed to conduct the

enquiry and to finalise it, after affording an opportunity of hearing to the

petitioner, at the earliest, at any rate within a period of one month from the

date of receipt of a copy of this judgment.

C.K. ABDUL REHIM
JUDGE
dnc