NIRMALA STORES Vs. INTELLIGENCE OFFICER

JUDGEMENT

(1.) The petitioner is a registered dealer under the provisions of the Kerala General Sales Tax Act, 1963 (hereinafter referred to as 'Act') on the files of the Sales Tax Officer, Cherthalai. It is dealing in "Unprocessed Nylon Knitted in length" used for the manufacture of nylon fishing net. The petitioner firm has purchased 105 kgs. of the aforesaid goods from Nagarcoil as per Ext. P-2 bill dated 5th June 1995. The goods were brought to Cherthalai through railway and delivery of the goods was taken at Cherthalai railway station on 9th June 1995. Thereafter the same was carried in an autorickshaw to the business premises of the firm. On the way, the 2nd respondent intercepted the vehicle and issued Ext. P3 notice proposing to take action under S.29A of the K.G.S.T. Act. By Ext. P-3, the petitioner firm was directed to produce the documents to prove the genuineness of the transport from Nagercoil to Cherthalai within a period of one hour from the time of issue of the notice (at 4.05 p.m. on 9th June 1995). In reply, the petitioner firm produced the original of Ext. P-2 bill at 4.50 p. m. on the same day. However, the 2nd respondent did not release the goods and thus detention of the goods continued. In the aforesaid background the petitioner came before this court with the present writ petition praying to quash Ext. P-3 notice and to issue a direction to release the goods forthwith.

(2.) The writ petition came up for admission oh 16th June 1995 and at the request of the Government Pleader the time was granted to obtain instruction and accordingly the case was adjourned to 21st June 1995. When it came up for hearing today, the Government Pleader again requested time for obtaining instructions. Since the goods were detained by the 2nd respondent on 9th June 1995, the counsel for the petitioner, on the other hand pressed for the release of the goods in, as much as the goods were detained unauthorisedly and the proceedings under S.29A were initiated in an arbitrary and unreasonable manner.

(3.) The first and foremost point advanced by the counsel for the petitioner is that the 'unprocessed nylon knitted in length' is an exempted item by virtue of Ext. P-1 order. By Ext. P-1 the Government have clarified that the nylon fish knitted fabrics sold in length will fall under entry 7 of the 3rd Schedule to the Act and is eligible for exemption from the levy of tax under the Act. The counsel also points out that Ext. P-2 bill clearly shows that the goods in question is an exempted goods. Therefore, I feel, prima facie that this is an item in respect of which no sales tax can be collected under the provisions of the Act. However, I do not propose to give a final conclusion on this issue since it is a matter to be dealt with in the enquiry contemplated under S.29A read with R.35A of the rules or in the regular assessment proceedings.