HADED STEELS PVT LTD Vs. INTELLIGENCE INSPECTOR

JUDGEMENT

(1.) Petitioner is a manufacturer of raw materials used for steel industry and is a registered dealer under the Kerala Value Added Tax Act (KVAT Act). Petitioner is aggrieved by detention of the transport of 34.90 M.T of 'M.S Ingots' consigned to a dealer at Calicut. Ext.P5 is the notice issued under Section 47(2) of the KVAT Act. The allegation is that when the driver was asked to stop the vehicle at the place of interception, at once he put 'zero' in the column provided for mentioning the time of commencement of journey, in the Delivery Note. According to the respondent it was only for making it appear that the time was written in 24 Hrs: format (railway time). From the act on the part of the driver, it is inferred that the time of commencement of journey was not written in the 24 Hrs: format in the Delivery Note, as required under Rule 58(16) of the KVAT Rules (as amended). The detaining authority had compared the Delivery Note with the original copy and found that there is discrepancy in the carbon impression, which will indicate that there is clear violation of Rule 58(17) of the KVAT Rules. Under such circumstances suspecting evasion in payment of tax due, security deposit was demanded.

(2.) According to learned counsel for the petitioner, there was no malafide intention in the transport and the consignment was accompanied by tax invoice in Form No.8 as well as the Delivery Note in Form No.15. The allegation of putting 'zero' before the time mentioned was done only with a genuine intention to rectify the error occurred while noting down the time, and to make it correct in accordance with the 24 Hrs: format. There was no attempt in evasion of payment of tax, is the submission.

(3.) Learned Government Pleader on the other hand contended that the item transported by the petitioner is 'tax prone item' and there was an instance of interception of another consignment of the petitioner during the previous week. It is submitted that the Delivery Note was kept without filling up one digit, only with an intention to manipulate the records in order to suit with the timings of the transport and it will indicate that the petitioner is malafidely attempting usage of the very same documents for the purpose of multiple transports.