Petitioner challenging detention of goods and vehicle due to tax classification dispute. Court directs release of goods on executing a simple bond without sureties for security deposit, to be adjudicated separately.
Release of goods and vehicle by executing a simple bond without sureties for the security deposit amount.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT:
THE HONOURABLE MR. JUSTICE A.K.JAYASANKARAN NAMBIAR
THURSDAY, THE 11TH DAY OF FEBRUARY 2016/22ND MAGHA, 1937
WP(C).No. 5155 of 2016 (T)
PETITIONER(S) :
SAJEEV KUMAR P.V., PROPRIETOR, A B S ROOFING, XX/979D, OPP:MINI CIVIL STATION, THRIPUNITHURA - 682 301, ERNAKULAM DISTRICT.
BY ADV. SRI.TOMSON T.EMMANUEL
RESPONDENT(S) :
1. COMMERCIAL TAX INSPECTOR, COMMERCIAL TAXES CHECK POST, WALAYAR - 678 625.
2. COMMERCIAL TAX OFFICER (WORKS CONTRACT), COMMERCIAL TAXES, ERNAKULAM, COCHIN - 682 018.
3. COMMISSIONER OF COMMERCIAL TAXES, TAX TOWER, KARAMANA P.O., THIRUVANANTHAPURAM - 695 033.
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 11-02-2016, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
Msd.
WP(C).No. 5155 of 2016 (T)
APPENDIX
PETITIONER(S)' EXHIBITS :
RESPONDENT(S)' EXHIBITS :
NIL
//TRUE COPY//
P.A.TO JUDGE.
Msd.
A.K.JAYASANKARAN NAMBIAR, J.
W.P.(C) No. 5155 of 2016
JUDGMENT
A consignment of Roofing material, that was being transported at the instance of the petitioner was detained by the respondents. Ext.P4 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.
case as also the submissions made across the bar, I dispose the writ petition with the following directions:
(i) On a perusal of Ext.P4 notice, it is seen that the objection of the respondent is essentially with regard to the classification of the item for the purposes of tax. While the petitioner had
W.P.(c).No.5155 of 2016
: 2 :
declared the goods as attracting tax @ 5%, the respondents were of the view that the goods would attract tax @ 14.5%. Counsel for the petitioner would submit that, when the items are incorporated by the petitioner in works contracts that he executes within the state, he is discharging tax liability on the goods @ 14.5%, after deducting the labour expense. Taking note of the said submission of counsel for the petitioner, and finding that the transportation of the goods was otherwise in compliance with the provisions of KVAT Act and taking note of the fact that the petitioner is a registered dealer within the State, I direct the 1st respondent to release the goods and the vehicle covered by Ext.P4 detention notice, to the petitioner, on his executing a simple bond without sureties for the security deposit amount demanded in the Ext.P4 notice, before the 1st respondent.
(ii) The 1st 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.
(iii) The petitioner shall produce a copy of this judgment and a copy of the writ petition before the 1st respondent.
Sd/-
A.K.JAYASANKARAN NAMBIAR JUDGE
sm/
2 issues framed by the court
Whether a registered dealer involved in works contracts must pay a security deposit as a condition for the release of detained goods and vehicle when there is a dispute over tax classification.
Whether the detention notice can be quashed pending adjudication of the tax classification objection.
2 provisions across 2 enactments
Sajeev Kumar P.V.
Commercial Tax Inspector, Commercial Taxes Check Post, Walayar
Commercial Tax Officer (Works Contract), Commercial Taxes, Ernakulam
Commissioner of Commercial Taxes, Thiruvananthapuram
A.K.Jayasankaran Nambiar
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
