Disposed

M/S. Matrix Flavours & Fragrances (India) P. Ltd. v. the State of Kerala

Kerala HC6 Jan 2016WP(C)/126/2016

Case brief

AI extract

What is this about?

The High Court of Kerala disposed of a writ petition challenging the detention of goods under tax inspection. The court directed the Respondent Inspector to release goods and the vehicle upon furnishing a simple bond without surety for the security deposit, transmitting files to the adjudicating authority within two months.

What did the court decide?

Directed the 2nd respondent to release goods and vehicle upon petitioner furnishing a simple bond without surety. Files to be transmitted to adjudicating authority within two months.

M/S. Matrix Flavours & Fragrances (India) P. Ltd. Vs the… — Banking and Recovery | Kerala HC (2016)

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IN THE HIGH COURT OF KERALA AT ERNAKULAM

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PRESENT:

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THE HONOURABLE MR. JUSTICE A.K.JAYASANKARAN NAMBIAR

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WEDNESDAY, THE 6TH DAY OF JANUARY 2016/16TH POUSHA, 1937

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WP(C).No. 126 of 2016 (M)

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PETITIONER :

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M/S. MATRIX FLAVOURS & FRAGRANCES (INDIA) P. LTD. , 32, KINFRA SMALL INDUSTRIAL PARK, NELLAD P.O., MUVATTUPUZHA, ERNAKULAM DISTRICT, KERALA - 686669 REPRESENTED BY IT'S DIRECTOR MR NOUSHAD NAINA

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BY ADV. SMT. K. LATHA

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RESPONDENTS :

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1. THE STATE OF KERALA REPRESENTED BY CHIEF SECRETARY, SECRETARIATE THIRUVANANTHAPURAM – 695 001.

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2. THE COMMERCIAL TAX INSPECTOR COMMERCIAL TAX CHECKPOST, WALAYAR-678 101.

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R1 & R2 BY GOVT. PLEADER SMT. K.T. LILLY

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THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 06-01-2016, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

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...2/-

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WP(C).No. 126 of 2016 (M)

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APPENDIX

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PETITIONERS' EXHIBITS :

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EXT. P1:THE TRUE COPY OF TAX INVOICE NO. 313/15-16 DATED 21ST SEPTEMBER 2015 ISSUED BY THE PETITIONER COMPANY TO RELISH INTERNATIONAL, MUMBAI.

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EXT. P2:THE TRUE COPY OF THE DETENTION NOTICE NO. OR/240/A/15-16 DTD. 23/9/2015 ISSUED BY THE 2ND RESPONDENT U/S 47(2) OF THE KVAT ACT TO THE PETITIONER.

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EXT. P3:THE TRUE COPY OF THE DESCRIPTION PROVIDED ABOUT THEIR PRODUCT MILK FLAVOR, CHOCOLATE FLAVOR, AND STRAWBERRY FLAVOR ESSENCE OF THE KIND USED IN FOOD AND DRINK INDUSTRIES GIVEN BY THE PETITIONER COMPANY

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RESPONDENT(S)' EXHIBITS : NIL

//TRUE COPY//

P.A. TO JUDGE

A.K.JAYASANKARAN NAMBIAR, J. ............................................................. W.P.(C).No.126 of 2016

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............................................................. Dated this the 6^th day of January, 2016

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J U D G M E N T

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A consignment of strawberry flavour essence, milk essence, chocolate essence etc that was being transported at the instance of the petitioner was detained by the respondents. Ext.P2 is the detention notice. In the writ petition, the petitioner is aggrieved by the insistence of the respondents that the petitioner must pay the security deposit demanded in the detention notice as a condition for release of the goods and vehicle.

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I have heard the learned counsel for the petitioner and also the learned Government Pleader for the respondents.

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On a consideration of the facts and circumstances of the case and the submissions made across the bar, I dispose the writ petition with the following directions:

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(i) On a perusal of Ext.P2 detention notice, it is seen that the objection of the respondents is essentially with regard to the classification of the item for the purposes of tax. The respondents were of the

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-2-

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W.P.(C). No. 126 of 2016

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view that the goods attracted tax at a rate higher than what was declared. Counsel for the petitioner would submit that the transportation of the goods was duly accompanied by valid documents as contemplated under the Kerala Value Added Tax Act and the classification of the goods was also correctly described therein. It is also pointed out that the petitioner is a registered dealer in the State.

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(ii) Taking note of the said submission of the learned counsel for the petitioner and finding the transportation of the goods to be in accordance with the provisions of the Kerala Value Added Tax Act, I direct the 2^nd respondent to release the goods and the vehicle to the petitioner, on the petitioner furnishing a simple bond without surety for the security deposit amount demanded in Ext.P2.

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(iii) The 2^nd respondent shall thereafter transmit the files to the adjudicating authority who shall adjudicate the matter and pass orders, after hearing the petitioner, within two months from the date of receipt of a copy of this judgment.

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(iv) The petitioner shall produce a copy of this judgment and a copy of the writ petition before the and 2^nd respondent.

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A.K.JAYASANKARAN NAMBIAR JUDGE

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mns/06.01.16

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W.P.(C). No. 126 of 2016

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M/S. Matrix Flavours & Fragrances (India) P. Ltd. v. the State of Kerala

Case brief

What is this about?

What did the court decide?

M/S. Matrix Flavours & Fragrances (India) P. Ltd. v. the State of Kerala

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

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