M/S.WORLD WOOD TIMBER MERCHANT V. THE AGRICULTURAL INCOME TAX AND COMMERCIAL TAX OFFICER

WP(C)/19000/2012

AI Insights

The case involves M/S. World Wood Timber Merchant, represented by its managing partner A.J. Halid, who filed a writ petition against the Agricultural Income Tax and Commercial Tax Officer, Alappuzha. The petitioner challenged the interception of 'Acacia' logs during transit, which were covered by invoices and a forest pass, on the grounds that the interception was primarily for the lack of a 'delivery note'. The goods were intercepted on 9.8.2012, and a notice under Section 47(2) of the KVAT Act was issued, demanding a security deposit. The petitioner argued that the invoices were directly in the name of the consumers and thus did not require a delivery note. The court heard arguments from both sides and decided to release the goods to the petitioner under a simple bond, allowing the respondent to continue with the adjudication process.

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 758889 (HC-KERALA)
• Appeal Type: Others
• Pronouncement Date: 13-08-2012
• Assessment Year: misc
• Laws Referred To: KVAT Act
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: SHOBA EAPEN
• Assessee Lawyers: N NAIR; V K SHAMUSUDHEEN
• Keywords: Delivery note; Interception of Goods; Security Deposit; Tax Evasion; Acacia logs; Forest pass
• Section: 47(2)

Judgement Text

"IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT: THE HONOURABLE MR.JUSTICE P.R.RAMACHANDRA MENON MONDAY, THE 13TH DAY OF AUGUST 2012/22ND SRAVANA 1934 WP(C).No. 19000 of 2012 (Y) --------------------------- PETITIONER(S): ------------------------ M/S. WORLD WOOD TIMBER MERCHANT, MAIN ROAD, MONGAM, MALAPPURAM DISTRICT, REPRESENTED BY ITS MANAGING PARTNER, A.J. HALID. BY ADVS. SRI.N.MURALEEDHARAN NAIR, SRI.V.K.SHAMUSUDHEEN. RESPONDENT(S): --------------------------- AGRICULTURAL INCOME TAX AND COMMERCIAL TAX OFFICER, KUTHIYATHODE-688 533, ALAPPUZHA DISTRICT. BY SR. GOVT. PLEADER SMT.SHOBA ANNAMMA EAPEN. THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 13-08-2012, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: rs. WP(C).No. 19000 of 2012 (Y) APPENDIX PETITIONER'S EXHIBITS:- EXT-P1 TRUE COPY OF THE INVOICE NO.105 DATED 08.08.2012. EXT-P2 TRUE COPY OF THE INVOICE NO.106 DATED 08.08.2012. EXT-P3 TRUE COPY OF THE INVOICE NO.107 DATED 08.08.2012. EXT-P4 TRUE COPY OF THE INVOICE NO.108 DATED 08.08.2012. EXT-P5 TRUE COPY OF THE FOREST PASS DATED 08.08.2012. EXT-P6 TRUE COPY OF THE NOTICE DATED 09.08.2012 ISSUED UNDER SECTION 47(2) OF THE KVAT ACT. RESPONDENT'S EXHIBITS:- NIL. //TRUE COPY// P.A. TO JUDGE rs. P.R. RAMACHANDRA MENON, J. --------------------------------------- W.P.(C). No.19000 of 2012 ---------------------------------------- Dated this the 13th day of August, 2012 JUDGMENT The interception of the goods transported by the petitioner involving 'Acacia' logs covered by Exts.P1 to P4 invoices raised in the name of concerned consumers doubting evasion of tax and demanding security deposit as specified therein, made the petitioner to approach this Court by filing this writ petition. 2. The petitioner is a registered dealer under the KVAT Act on the files of Commercial Tax Officer, Manjeri. 68 'Acacia' polls were purchased by the petitioner and they were in turn sold to four different consumers vide Ext.P1 to P4 dated 8.8.2012. The goods were loaded in the vehicle bearing No.KL 02 J 9988 and they were sought to be transported to the destination also on the strength of Ext.P5 Forest Pass. It was in the course of transit as above, that the goods were intercepted by the respondent on 9.8.2012 issuing Ext.P6 notice under Section 47(2) of the KVAT Act which hence is under challenge in this writ petition. 3. The learned counsel for the petitioner submits that the interception is mainly for want of 'delivery note' and further that the goods happened to be detained at Cherthala, which does not W.P.C. No. 19000 of 2012 -2- reconcile with the movement of the goods from the place of origin. The learned counsel further submits that departmental delivery note is contemplated only with regard to the entry into and outside the State or where there is a dealer to dealer transaction, which is not the position in the case in hand. Here, Exts.P1 to P4 invoices are raised in the name of the consumers and as such, there is no necessity to have accompanied any delivery note, submits the learned counsel. 4. Heard the learned Government Pleader as well, who submits that the correctness of the factual position as sought to be projected by the petitioner is a matter to be adjudicated. But, for that reason, the goods need not be detained any further and the same shall be released to the petitioner forthwith, on executing a 'simple bond' without sureties. This shall be without prejudice to the rights and liberties of the respondent to proceed with the adjudication proceedings, which shall be completed in accordance with the relevant provisions of law, as expeditiously as possible. Writ petition is disposed of. P.R. RAMACHANDRA MENON, JUDGE. Kp/- "