GILBERT KERNOLY Vs. COMMERCIAL TAX INSPECTOR

JUDGEMENT

(1.) THE petitioner who is running a car wash system having the head office at Nettoor in Ernakulam district and is also dealing in car accessories as well as car wash equipments, is proposing to start a branch in Navaikulam area in Trivandum. With this intent the petitioner had placed a purchase order to the consignor, at Nagpur in Maharashtra. Pursuant to the purchase order, the consignor, transported the said item on the strength of Ext.P3 invoice dated 12.6.2012 raising the invoice in the name of the petitioner, however showing the place of delivery at Navaikulam. In the course of transit, it was intercepted by the 1st respondent issuing Ext.P4 notice under Section 47(2) of the KVAT Act doubting evasion of tax and demanding security deposit to an extent of Rs.4,40,670/-, which made the petitioner to approach this Court; as Ext.P5 reply submitted by him on 23.6.2012 did not turn to be fruitful.

(2.) HEARD the learned Government Pleader as well.

(3.) THE learned counsel for the petitioner submits that the branch is proposed to be set up at the place in question and the petitioner is entitled to report the setting up of such branch within 30 days after setting up the same. However the discrepancy in the version of the petitioner as given in Ext.P5 has been referred to by the concerned officer in Ext.P6 reply, observing that, at one place, the petitioner submits that the petitioner has not intimated the concerned authority while in the concluding paragraph it is stated that the petitioner has already informed the position to the concerned authorities. In any view of the matter, this Court finds that the matter requires to be adjudicated in tune with the relevant provisions of law. But for that matter, the goods need not be detained any further and shall be released to the petitioner on satisfying 50% of the security deposit demanded in Ext.P4; either in cash or by way of Bank guarantee and executes a 'Simple Bond' without sureties for the balance amount. This shall be without prejudice to the rights of the respondents to pursue the adjudication proceedings, which shall be finalised in accordance with law, at the earliest. Writ petition is disposed of.