{"id":243781,"date":"2010-10-01T00:00:00","date_gmt":"2010-09-30T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/viji-thankachan-vs-commercial-tax-inspector-on-1-october-2010"},"modified":"2014-11-22T23:09:05","modified_gmt":"2014-11-22T17:39:05","slug":"viji-thankachan-vs-commercial-tax-inspector-on-1-october-2010","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/viji-thankachan-vs-commercial-tax-inspector-on-1-october-2010","title":{"rendered":"Viji Thankachan vs Commercial Tax Inspector on 1 October, 2010"},"content":{"rendered":"<div class=\"docsource_main\">Kerala High Court<\/div>\n<div class=\"doc_title\">Viji Thankachan vs Commercial Tax Inspector on 1 October, 2010<\/div>\n<pre>       \n\n  \n\n  \n\n \n \n  IN THE HIGH COURT OF KERALA AT ERNAKULAM\n\nWP(C).No. 30178 of 2010(V)\n\n\n\n1. VIJI THANKACHAN\n                      ...  Petitioner\n\n                        Vs\n\n1. COMMERCIAL TAX INSPECTOR\n                       ...       Respondent\n\n                For Petitioner  :SRI.VIJAYAN. K.U.\n\n                For Respondent  : No Appearance\n\nThe Hon'ble MR. Justice C.K.ABDUL REHIM\n\n Dated :01\/10\/2010\n\n O R D E R\n                    C.K.ABDUL REHIM, J.\n\n                 -------------------------------------------\n                   W.P.(C).No.30178 of 2010\n                 -------------------------------------------\n\n           Dated this the 1st day of October, 2010\n\n\n                         J U D G M E N T\n<\/pre>\n<p>                         &#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;-\n<\/p>\n<p>           Petitioner is aggrieved by detention of goods<\/p>\n<p>purchased interstate on payment of CST at the rate of 2%.<\/p>\n<p>According to the petitioner, the goods were purchased from<\/p>\n<p>a dealer in Mumbai by virtue of Ext.P2 invoice, under C-<\/p>\n<p>Form, on payment of concessional rate of tax.                   The<\/p>\n<p>consignment was detained at the Commercial Tax Check<\/p>\n<p>Post at Walayar by the 1st respondent on issuing Ext.P3<\/p>\n<p>notice under Section 47(2) of the Kerala Value Added Tax<\/p>\n<p>Act, 2003 (KVAT Act). The reason for detention mentioned<\/p>\n<p>therein is that only a photocopy of the invoice was<\/p>\n<p>accompanying the transport and no other valid documents<\/p>\n<p>were available. Suspecting attempt in evasion of payment of<\/p>\n<p>tax the petitioner was directed to furnish security.<\/p>\n<p>     2.    According to learned counsel for the petitioner,<\/p>\n<p>the transaction in question is purely an interstate purchase,<\/p>\n<p>which will not attract levy of tax under the provisions of the<\/p>\n<p>W.P.(C).30178\/10-V              -2-\n<\/p>\n<p>KVAT Act. Relying on the decision in Baheej Agencies Vs. STO<\/p>\n<p>(6 KTR 150 (Ker.)) it is contended that the documents<\/p>\n<p>prescribed under the KVAT Act and the Rules need not<\/p>\n<p>accompany with respect to a transport by way of interstate<\/p>\n<p>movement and the documents prescribed under law of the<\/p>\n<p>consignor&#8217;s state will be sufficient. Further contention is that,<\/p>\n<p>eventhough the KVAT Act and the Rules thereunder insist for a<\/p>\n<p>transporter copy of the invoice to be accompanied with the<\/p>\n<p>consignment, there is no identical provision contained in the<\/p>\n<p>local law with respect to the state of the consignor. He further<\/p>\n<p>contends that the defect noted is only technical in nature, and<\/p>\n<p>insistence for payment of cash deposit is highly unreasonable<\/p>\n<p>and unjustifiable. Therefore the petitioner seeks direction for<\/p>\n<p>release of the goods pending finalisation of the enquiry.<\/p>\n<p>      3.    Learned Government Pleader, per contra, contended<\/p>\n<p>that the movement of the goods within the barriers of the state,<\/p>\n<p>if not accompanied by documents prescribed under the KVAT Act<\/p>\n<p>and the Rules thereunder, need be treated as an illegal transport<\/p>\n<p>and penalty is liable to be imposed.       It is argued that the<\/p>\n<p>authority is well justified in detaining the goods because the<\/p>\n<p>suspicion raised with respect to evasion in payment of tax is<\/p>\n<p>W.P.(C).30178\/10-V              -3-\n<\/p>\n<p>reasonable. Since photocopy of the invoice alone was<\/p>\n<p>accompanying the goods, there is every reason to suspect that<\/p>\n<p>the petitioner might have clandestinely transported the goods on<\/p>\n<p>the strength of the original of the invoice, bypassing the check<\/p>\n<p>post.    Therefore it is contended that the petitioner need be<\/p>\n<p>compelled to furnish adequate security, is the contention.<\/p>\n<p>      4.    I am not intending to consider the rival contentions or<\/p>\n<p>to enter any findings on the issue raised. The detention need to<\/p>\n<p>be followed by an enquiry to be conducted by the competent<\/p>\n<p>authority. At this stage, while considering the question with<\/p>\n<p>respect to release of goods, I am of the opinion that pending<\/p>\n<p>finalisation of the enquiry the goods in question can be released<\/p>\n<p>on the petitioner furnishing proper security. Taking note of the<\/p>\n<p>fact that the petitioner is a registered dealer and also that the<\/p>\n<p>transaction is an interstate purchase, I am inclined to allow the<\/p>\n<p>goods to be released on the petitioner furnishing security bond,<\/p>\n<p>without sureties.\n<\/p>\n<p>      5.    The 1st respondent is therefore directed to release the<\/p>\n<p>goods detained under Ext.P3 on the petitioner furnishing<\/p>\n<p>security bond in the form prescribed under the KVAT Rules,<\/p>\n<p>without sureties, for the value demanded in Ext.P3.<\/p>\n<p>W.P.(C).30178\/10-V               -4-\n<\/p>\n<\/p>\n<p>      6.    The competent authority will finalise the enquiry at<\/p>\n<p>the earliest possible, after affording an opportunity of hearing to<\/p>\n<p>the petitioner, at any rate within a period of six weeks from the<\/p>\n<p>date of release of the goods.\n<\/p>\n<\/p>\n<p>                            C.K.ABDUL REHIM, JUDGE.\n<\/p>\n<p>okb<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Kerala High Court Viji Thankachan vs Commercial Tax Inspector on 1 October, 2010 IN THE HIGH COURT OF KERALA AT ERNAKULAM WP(C).No. 30178 of 2010(V) 1. VIJI THANKACHAN &#8230; Petitioner Vs 1. COMMERCIAL TAX INSPECTOR &#8230; Respondent For Petitioner :SRI.VIJAYAN. K.U. For Respondent : No Appearance The Hon&#8217;ble MR. Justice C.K.ABDUL REHIM Dated :01\/10\/2010 O [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[8,21],"tags":[],"class_list":["post-243781","post","type-post","status-publish","format-standard","hentry","category-high-court","category-kerala-high-court"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Viji Thankachan vs Commercial Tax Inspector on 1 October, 2010 - Free Judgements of Supreme Court &amp; High Court | Legal India<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legalindia.com\/judgments\/viji-thankachan-vs-commercial-tax-inspector-on-1-october-2010\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Viji Thankachan vs Commercial Tax Inspector on 1 October, 2010 - Free Judgements of Supreme Court &amp; 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