D RANGANATHAN Vs. COMMERCIAL TAX INSPECTOR

JUDGEMENT

(1.) Challenge in this writ petition is against Ext. P4 order issued by the 2nd respondent imposing penalty under S.47(6) of the Kerala Value Added Tax Act, 2003 (KVAT Act). Brief history of the case is that, the petitioner who is a resident of Dharmapuram Taluk in Tirupur District of Tamilnadu State, had attempted transport of an Excavator Loader (JCB) through the Commercial Tax Check post at Gopalapuram at the border of the State of Kerala, and it was detained by the 1st respondent, invoking S.47(2) of the KVAT Act, on issuing Ext. P2 notice. The reason for detention mentioned in the notice is as follows:

(2.) According to the petitioner, the Excavator was purchased from a person at Pondicherry, by virtue of a document styled as 'Sale Deed' (Ext. P1). The Excavator was bearing Regn. No.PY01 / Y - 9607. It is the further case that, after the purchase, complete re - painting of the vehicle was done for the purpose of re - registration at Tamilnadu and in that process the registration number written on the vehicle was erased, with a view to paint the new number, after re - registration. But, in the meanwhile, the petitioner got a job work at 'Meenakshipuram' in Tamilnadu State and the vehicle was taken from 'Dharmapuram' to 'Meenakshipuram'. It is the contention of the petitioner that, the vehicle was wrongly driven to the Kerala border, since the driver had committed a mistake in following proper route. Instead of turning the vehicle towards 'Meenakshipuram', at a junction which is only about 50 Mtrs away from the border check post, the driver took the vehicle directly to the Kerala border. According to the petitioner, the vehicle was never intended to be taken into the State of Kerala, and the 2nd respondent while intercepting the vehicle has not allowed the driver to take back the vehicle to 'Meenakshipuram'. It is contended that, under the above mentioned circumstances the transport was not accompanied by any documents and there was absolutely no attempt to bring the vehicle into the State of Kerala with any intention to evade payment of tax due to the State.

(3.) Pursuant to the detention and issuance of Ext. P2 notice, the petitioner had approached this Court by filing WP (C) No. 27027/2011. This Court, through Ext. P3 interim order directed the 2nd respondent to hand over the detained goods along with relevant documents to the competent authority having jurisdiction under S.47(5) & (6) of the KVAT Act, in order to finalise the enquiry. The competent authority was directed to conduct enquiry and to finalise the matter, after affording an opportunity of hearing to the petitioner. Ext. P4 order is issued in compliance with the directions contained in Ext. P3 interim order.