FEDERAL GARDENS OWNERS ASSOCIATION FEDERAL GARDENS PULINCHODE ALUVA Vs. COMMERCIAL TAX INSPECTOR COMMERCIAL TAX CHECK POST WALAYAR

JUDGEMENT

(1.) THE '3HP Motor' brought by the petitioner from Chennai, for 'own use' of the petitioner Residents' Association in the vehicle bearing No. TN 59V 5961 was intercepted by the respondent on 12.05.2012, issuing Ext. P3 notice under Section 47(2) of the KVAT Act, doubting evasion of tax and demanding security to the extent as specified therein, which made the petitioner to approach this Court by filing the present writ petition.

(2.) THE learned counsel for the petitioner submits that, this is nothing but an arbitrary exercise of power, in so far as transportation effected by the petitioner was on the basis of valid documents as contemplated under Section 46(3) of the Act and that the doubt expressed by the respondent as given in Ext. P3 is not based on any reliable material. It is stated that the petitioner Association, which consists of owners of different apartments in the building complex, required to have a 3 HP motor, which accordingly was ordered, by placing Ext. P1 order by 'e-mail' on 04.05.2012. As evident from Ext. P1, it is an order for supply alone, for the agreed sale consideration of Rs.1,75,000/- and nothing is mentioned with regard to any installation. THE position becomes more clear from Exts. P2/P2(a) invoice and delivery chalan respectively and no such installation at the hands of the consignor is mentioned in the said documents. In Ext. P2(a) delivery chalan, it is stated that the motor is supplied to the residential society for their 'own use' in sewage treatment and not for sale. THE learned counsel further submits that, though the petitioner approached the respondent with further materials in support of their claim by way of Ext. P4(a) certificate of ownership and Ext. P4(b) representation, they did not accept the same, which hence is sought to be intercepted.

(3.) IT is made clear that the release of the goods as above shall be subject to the outcome of the adjudication proceedings, so to be pursued by the respondent. The undertaking of the learned counsel for the petitioner that the petitioner will co-operate with the adjudication proceedings is recorded. The Writ Petition is disposed of.