C VAIKUNDA SEKHAR Vs. INTELLIGENCE INSPECTOR

JUDGEMENT

(1.) Petitioner is aggrieved by interception of a transport, wherein fishing ropes purchased from the State of Maharashtra is being detained, on issuing Ext.P4 notice under Section 47(2) of the Kerala Value Added Tax Act (KVAT Act). According to the petitioner the goods is an exempted item as per Entry 18 of the first schedule of the KVAT Act, having HSN Code No.5607.49.00. On a perusal of Ext.P4, it is revealed that the first respondent, after verification of the goods under transport, found that the item transported was P.P rope which is meant for uses other than fishing and is a taxable item at the rate of 12.5%. According to him the goods under transport will come under HSN Code No.5607.49.00. Hence it is suspected that there is collusion between the consignor in Maharashtra and the petitioner for misclassification of goods with, an intention to evade payment of tax due.

(2.) According to the petitioner all the documents which accompanied the transport will reveal that the item transported was only P.P fishing rope. It is stated that the petitioner had effected sale enroute to various dealers on the strength of invoices describing the item as P.P fishing rope. It is contended that the findings of the first respondent that the goods is a different commodity is without any basis.

(3.) Learned Government Pleader on the other hand pointed out that on verification, the first respondent was convinced that the rope in question is one not being used for fishing purposes and it will not fall within the category mentioned in HSN Code No.5607.49.00. Therefore this is an item coming under HSN Code No.5607.90, which is taxable at the rate of 12.5% as unclassified item under Entry 103 of SRO 82/2006.