PERIYAR CEMENTS PVT LTD Vs. COMMERCIAL TAX OFFICER

JUDGEMENT

(1.) The appellant in the writ appeal and the petitioner in the writ petitions is one and the same party which is in arrears of tax of around Rs. 60 lakhs due for the assessment years 2002-2003 till 2008-2009. Capital goods brought by the assessee for installation in their factory at Kanjikode are detained in the Check Post on allegation of attempted evasion of tax in respect of the goods. One more ground in support of the detention stated in the notice is that the appellant/petitioners are in arrears of tax for which goods can be detained as provided u/s 47(4) of KVAT Act. Single Judge directed adjudication before release of goods against which the writ appeal is filed. Petitioner has filed writ petitions for direction to the appellate authorities to dispose of the various statutory appeals pending against assessments under which arrears are due.

(2.) We have heard counsel appearing for the appellant/petitioner and senior Government Pleader appearing for respondents. The case in hand is one unusual but prudent step taken by the Check Post officials to recover the arrears of tax by detaining the goods transported by defaulter who owe substantial amount of tax to the department for the past few years.

(3.) Counsel for the appellant/petitioner submits that S.47(4) does not authorize recovery of arrears of tax by detaining goods under transport at the Check Post. On the other hand, according to him the Section authorizes detention of goods and release of the same on payment of tax, if any due, in respect of the goods transported. The Government Pleader has defended the action of the Check Post officials in detaining the goods on both the grounds. Since the controversy is on the scope of S.47, we extract the said provision hereunder for reference.