Allowed

Viveka Essence Mart v. the Commercial Tax Officer

Kerala HC1 Jun 2016WP(C)/18925/2016

Case brief

AI extract

What is this about?

This writ petition challenges a detention notice issued for tax evasion. The court held that for a registered dealer, the issue of classification warrants release of goods upon furnishing a simple bond without sureties. The adjudication proceedings were directed to be completed within two months.

What did the court decide?

Release of goods on furnishing a simple bond without sureties; adjudication to be completed within two months from date of receipt of judgment.

Viveka Essence Mart Vs the Commercial Tax Officer — GST and Indirect Tax | 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.M.SHAFFIQUE

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WEDNESDAY, THE 1ST DAY OF JUNE 2016/11TH JYAISHTA, 1938

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WP(C).NO. 18925 OF 2016 (M)

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PETITIONER:

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VIVEKA ESSENCE MART

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NO. 37/1739, T.D.WEST SANNIDHI ROAD, ERNAKULAM, COCHIN, PIN-682 035, REPRESENTED BY ITS PARTNER, SRI. VIJAYA KUMAR TANTRY

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BY ADV. SRI.R.MURALIDHARAN (AROOR)

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RESPONDENT(S):

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1. THE COMMERCIAL TAX OFFICER KVAT SECOND CIRCLE, DEPARTMENT OF COMMERCIAL TAXES, CLASS TOWER, OLD RAILWAY STATION ROAD, ERNAKULAM-682035

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2. THE INTELLIGENCE INSPECTOR

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SQUAD NO. VIII, OFFICE OF THE INSPECTING ASSISTANT COMMISSIONER (INTELLIGENCE), DEPARTMENT OF COMMERCIAL TAXES, ERNAKULAM-682015

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BY GOVERNMENT PLEADER SMT. LILLY K.T.

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

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WP(C).NO. 18925 OF 2016 (M)

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APPENDIX

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PETITIONER(S)' EXHIBITS

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EXT.P1:COPY OF THE REGISTRATION CERTIFICATE OF THE PETITIONER ISSUED BY THE 1ST RESPONDENT DT. 31/5/07

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EXT.P2:COPY OF THE INVOICE NO.30367 DT. 12/5/16 ATTACHED WITH THE CONSIGNMENT.

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EXT.P2A:COPY OF THE INVOICE NO.7943 DT. 12/5/16 ATTACHED WITH CONSIGNMENT.

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EXT.P2B:COPY OF THE INVOICE NO.30366 DT. 12/5/16 ATTACHED WITH THE CONSIGNMENT.

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EXT.P2C:COPY OF THE INVOICE NO.30369 DATED 12.05.2016 ATTACHED WITH THE CONSIGNMENT

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EXT.P3:COPY OF THE TRANSACTION SLIP UPLOADED FOR THE GOODS COVERED BY EXT. P-2 INVOICE

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EXT.P3:COPY OF THE TRANSACTION SLIP UPLOADED FOR THE GOODS COVERED BY EXT. P-2 INVOICE.

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EXT.P3A:COPY OF THE TRANSACTION SLIP UPLOADED FOR THE GOODS COVERED BY EXT. P-2(A) INVOICE

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EXT.P3B:COPY OF THE TRANSACTION SLIP UPLOADED FOR THE GOODS COVERED BY EXT. P-2(B) INVOICE

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EXT.P3C:COPY OF THE TRANSACTION SLIP UPLOADED FOR THE GOODS COVERED BY EXT.P2(C) INVOICE.

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EXT.P4:COPY OF THE NOTICE ISSUED UNDER SECTION 47(2) BY THE 2ND RESPONDENT, DATED 17.05.2016.

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RESPONDENTS EXHIBITS: NIL

/TRUE COPY/

P.A. TO JUDGE

SKV

A.M.SHAFFIQUE, J.

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------------------------------------ W.P.(C) No.18925 of 2016

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Dated this the 1^st day of June, 2016

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J U D G M E N T

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Petitioner challenges Ext.P4 detention notice by which the consignment was detained by the respondents on the allegation that there is attempt to evade tax. According to the petitioner, the reason mentioned in Ext.P4 for detention is unsustainable and the petitioner has not attempted to evade tax. Petitioner is aggrieved by Ext.P4 to the extent he is called upon to furnish security deposit as a condition for release of the goods.

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Heard the learned counsel for the petitioner and the learned Government Pleader appearing for the respondents.

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It is stated in Ext.P4 that “the goods under transport are checked at KRS Roadways Pvt. Ltd., Ekm. As per on-line 8F the commodity declared by the transporter as edible gelatine and sodium benzoate coming under III Schedule taxable @ 5%. On verification the consignment has also include Ascorbic acid, Sodium Citrate/Saccharine, Cocoa Powder, Calcium Phosphate and Xycil which are coming under RNR rate and fetch tax rate @ 14.5%. Total value of the 14.5% taxable goods will comes to Rs.1,86,550/-. V/E Rs.2,00,000/-. SD demanded for misclassification in the lower rate.”

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Having regard to the fact that the petitioner is a registered dealer and the issue is only with reference to classification, I am of

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W.P.(C) No.18925 of 2016

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the view that the goods can be released to the petitioner on furnishing a simple bond without sureties. Accordingly, this writ petition is disposed of as under:

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(i) The goods mentioned in Ext.P4 shall be released to the petitioner on the petitioner furnishing a simple bond without sureties before the 2^nd respondent.

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(ii) The 2^nd respondent shall complete the adjudication proceedings within a period of two months from the date of receipt of a copy of this judgment.

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Sd/-

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A.M.SHAFFIQUE, JUDGE.

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Viveka Essence Mart v. the Commercial Tax Officer

Case brief

What is this about?

What did the court decide?

Viveka Essence Mart v. the Commercial Tax Officer

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

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