The petitioner challenged the detention of goods due to a tax classification dispute. The Court directed the respondent to release goods against a simple bond and remit the file for adjudication.
Respondent to release goods and vehicle against a simple bond without surety for the demanded security deposit.
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IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT:
THE HONOURABLE MR. JUSTICE A.K.JAYASANKARAN NAMBIAR
MONDAY, THE 8TH DAY OF FEBRUARY 2016/19TH MAGHA, 1937
WP(C).NO. 4436 OF 2016 (D)
PETITIONER(S):
M/S OFFSHORE INFRASTRUCTURES LTD., SREEHARI, MPRA 12, EROOR WEST P.O. THRIPUNITHURA REPRESENTED BY IT'S PROJECT MANAGER MR.M.M.GOPALAN.
BY ADV. SMT.K.LATHA
RESPONDENT(S):
BY GOVERNMENT PLEADER SMT.LILLY K.T
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 08-02-2016, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
WP(C).NO. 4436 OF 2016 (D) ---------------------------
APPENDIX
PETITIONER(S)' EXHIBITS
EXT.P1: THE TRUE COPY OF THE INTERSTATE PURCHASE INVOICE NO.763 DATED 01/02/2016 ISSUED BY THE ACE ENGINEERS, COIMBATORE TO THE PETITIONER.
EXT.P2: THE TRUE COPY OF THE FORM NO.15 ISSUED BY THE PETITIONER DATED 2 FEBRUARY, 2016.
EXT.P2(A): THE TRUE COPY OF THE FORM NO.8F DATED 2 FEBRUARY 2016 ISSUED BY THE PETITIONER.
EXT.P3: THE TRUE COPY OF THE DETENTION NOTICE NO.OR/4218/8/2015-16 DATED 03/02/2016 ISSUED BY THE SECOND RESPONDENT U/S 47 (2) OF THE KVAT ACT TO THE PETITIONER.
RESPONDENT(S)' EXHIBITS:NIL
//TRUE COPY//
P.A TO JUDGE
A.K.JAYASANKARAN NAMBIAR, J.
............................................................. W.P.(C).No.4436 Of 2016
............................................................. Dated this the 8th day of February, 2016
J U D G M E N T
A consignment of M.S. Ladders that was being transported at the instance of the petitioner was detained by the respondents. Ext.P3 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.
(i) On a perusal of Ext.P3 detention notice, it is seen that the objection of the respondents is essentially with regard to the classification of the
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W.P.(C). No. 4436 of 2016
item for the purposes of tax. While the petitioner declared the item as iron and steel and remitted advance tax at the rate of 5%, the respondents were of the view that the item would attract tax at the rate of 14.5%. Counsel for the petitioner would submit that the advance tax in respect of the item transported has already been paid and the detention cannot be based on a classification dispute raised by the respondents. It is also pointed out that the petitioner is a registered dealer in the State.
(ii) Taking note of the said submission of counsel for the petitioner, I direct the 2nd 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.P3.
(iii) The 2nd 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.
(iv) The petitioner shall produce a copy of
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W.P.(C). No. 4436 of 2016
this judgment and a copy of the writ petition before the 2nd respondent.
Sd/-
A.K.JAYASANKARAN NAMBIAR JUDGE
mns/8.02.16
3 issues framed by the court
Whether the detention of goods based on a classification dispute is justified when advance tax has already been paid.
Whether a simple bond without surety can be accepted for the release of detained goods and vehicle.
What is the procedure for adjudicating the tax classification dispute after release of goods.
1 provisions across 1 enactments
M/S OFFSHORE INFRASTRUCTURES LTD.
THE STATE OF KERALA
THE COMMERCIAL TAX INSPECTOR
A.K.JAYASANKARAN NAMBIAR
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
