POLAKULATH NARAYANAN RENAI MEDICITY PALARIVATTOM KOCHI Vs. COMMERCIAL TAX INSPECTOR COMMERCIAL TAXE CHECK POST WALAYAR

JUDGEMENT

(1.) THE petitioner, who is a 500 bedded upcoming super specialty charitable hospital and a registered dealer before the respondent, is stated as aggrieved of interception of the vehicle and the goods in the course of transit from outside the State.

(2.) THE materials as above (door frames for the operation theatre in the hospital), were purchased as per Ext. P2 invoice, paying tax at the prescribed rate. THE said items were being transported in the vehicle bearing No. KA 02 AA 5988 on 14.05.2012, when it was intercepted by the respondent at the check post, issuing Ext. P3 notice under Section 47 (2) of the KVAT Act, doubting evasion of tax and demanding security deposit to the extent as specified therein.

(3.) CONSIDERING the facts and circumstance, this Court finds that the course pursued by the respondent cannot be said as arbitrary or illegal, more so, when the only document which accompanied the transport was the 'Invoice' and not even 'Form 16'. However, the goods need not be detained till the adjudication proceedings are over. Accordingly, the respondent is directed to release the goods detained by them as per Ext. P3 forthwith, on condition that, the petitioner furnishes 'Bank Guarantee' for the amount shown in Ext. P3 or sufficient security by way of immovable property to the satisfaction of the department. This will be without prejudice to the rights and interests of the respondents to pursue adjudication proceedings, pursuant to Ext. P4 and the same shall be finalized in accordance with law, as expeditiously as possible. It is made clear that the adjudicating authority shall decide the issue untrammeled by the observations made herein before and the matter has to be considered independently arriving an inference on the pleadings and evidence to be let in. The Writ Petition is disposed of.