High Court Kerala High Court

M/S.Southern Ispat Limited vs Government Of Kerala on 19 March, 2009

Kerala High Court
M/S.Southern Ispat Limited vs Government Of Kerala on 19 March, 2009
       

  

  

 
 
  IN THE HIGH COURT OF KERALA AT ERNAKULAM

WP(C).No. 8649 of 2009(A)


1. M/S.SOUTHERN ISPAT LIMITED,
                      ...  Petitioner

                        Vs



1. GOVERNMENT OF KERALA,
                       ...       Respondent

2. SALES TAX INSPECTOR,

                For Petitioner  :SRI.J.JULIAN XAVIER

                For Respondent  : No Appearance

The Hon'ble MR. Justice K.M.JOSEPH

 Dated :19/03/2009

 O R D E R
                           K.M. JOSEPH, J.

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                   W.P.(C) No. 8649 OF 2009 A
             ````````````````````````````````````````````````````
             Dated this the 19th day of March, 2009

                           J U D G M E N T

Petitioner challenges Ext.P1 which is a notice issued

under section 47(2) of the Kerala Value Added Tax Act, 2003.

The objection stated is as follows:

” The goods under transport is M.S.Ingots

sold by M/s.Southern Ispat Ltd. But the Delivery

Note in Form 15 prescribed under section 46(3)

of the KVAT Act is not issued by M/s.Southern

Ispat Ltd. Evasion of attempt of tax is

suspected, in the absence of consignor’s

delivery note. Moreover information gathered

from the assessing authority is that, the

consignor is not a prompt remitter of tax to

government. In the circumstances, bonafides of

the transport and attempt to evasion of tax

suspected.”

2. I heard learned counsel for the petitioner Sri.Raju

Joseph and learned Government Pleader. According to the

petitioner, the petitioner has sold 15.475 MT of M.S.Ingots to

M/s.Jayasankar Steels Private Limited. The goods were

accompanied by the sales invoice. It is also stated that the goods

WPC.8649/09
: 2 :

were accompanied by the delivery note of the consignee. It is

pointed out that there is no requirement that there should be a

delivery note. Further contention is that the Rule does not

specifically stipulate that the delivery note should be by the

consignor itself. I find that in Ext.P1, the officer has taken note of

the bill as also the delivery note issued by the consignee. Of

course, it is stated that the information gathered from the

assessing authority is that the consignor is not a prompt remitter of

tax. Having regard to the totality of facts, I would think that the

goods should be released to the petitioner upon the petitioner

giving a simple bond without sureties and adjudication is to be

completed.

Accordingly, writ petition is disposed of directing the 2nd

respondent to release the goods detained vide Ext.P1 immediately

upon the petitioner executing a simple bond without sureties for

the amount. The adjudication will be completed within two months

WPC.8649/09
: 3 :

from the date of receipt of a copy of this judgment untrammeled

by anything stated in this judgment.

Sd/-

(K.M.JOSEPH, JUDGE)
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