COMPUTER GRAPHICS LTD Vs. COMMERCIAL TAX INSPECTOR

JUDGEMENT

(1.) Petitioner is aggrieved by detention of a transport of X-ray films consigned through railway, on issuing Ext.P5 notice under Section 47(2) of the Kerala Value Added Tax Act (KVAT Act). According to the petitioner the goods were despatched on stock transfer basis from their factory at Goa on the strength of Exts.P2 and P3 invoices cum delivery challan. Ext.P4 parcel way bill is produced in order to prove that the goods were transported through railway. On a perusal of Ext.P5, it is revealed that the goods were intercepted at Ernakulam South Railway Station premises. The reason for detention mentioned in Ext.P5 is that, on verification the goods were not seen declared at any border check posts or any offices. Therefore suspecting evasion of payment of tax, security deposit was demanded.

(2.) According to learned counsel for the petitioner, it is evident from the invoices cum delivery challans as well as from the parcel way bill that the goods were transported through railway on the strength of valid documents. Therefore it is submitted that there was no attempt in evasion of payment of tax.

(3.) Learned Government Pleader, per contra, contended that, as per Section 46(3)(e) the petitioner was bound to declare the consignment despatched through railway, before the Commercial Tax Officer concerned and failure to submit such declaration will amount to a transport without proper documents. It is contended that there is every chance of the petitioner using the documents, if it would not have been intercepted, for multiple transports. Therefore the petitioner should be insisted for payment of security deposit, is the contention.