HANOKS ENTERPRISES Vs. INTELLIGENCE INSPECTOR

JUDGEMENT

(1.) THE petitioner, a registered dealer under the KVAT Act and CST Act, is stated as compelled to wind up his shop and return the goods already purchased by him to the very same franchiser in respect of whom the petitioner has been functioning as a franchisee.

(2.) THE case of the petitioner is that, being attracted with the terms and possible chance for business expansion in Oberon Mall, a shop was started by the petitioner as franchisee for the products of the brand 'Reebok'. The goods were accordingly purchased from the franchiser by name Alok Retail India Ltd., Mumbai. But the business did not catch up in view of the stiff competition in the market and the petitioner was constrained to put an end to his business, as a result of which, the available goods were sought to be returned to the franchiser. It was accordingly, that the goods were being returned as supported by Ext.P2 'debit note' in the vehicle bearing No. KA 01 AA 4981, when it was intercepted on 26.6.2012 issuing Ext.P1 notice under Section 47(2) of the KVAT Act, doubting evasion of tax and demanding security deposit to the extent as specified therein, as the 'debit note' was not in the proper form.

(3.) ON going through the pleadings and proceedings, it is seen that the goods are returned to the very same franchiser from whom the goods were stated as purchased. But whether there is an element of sale or whether any attempt to evade tax is there, forms a matter to be considered and adjudicated in the course of appropriate proceedings. For that matter, the goods need not be detained any further. It shall be released to the petitioner forthwith, on executing of a 'simple bond' without sureties. This shall be without prejudice to the rights and liberties of the respondents to proceed with the adjudication proceedings, which shall be finalized in accordance with the relevant provisions of law, as expeditiously as possible. Writ petition is disposed of.