M/S.Euro Business System v. State Of Kerala
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT:
THE HONOURABLE MR.JUSTICE K.VINOD CHANDRAN TUESDAY, THE 27TH DAY OF OCTOBER 2015/5TH KARTHIKA, 1937 WP(C).No. 32631 of 2015 (D) ---------------------------- PETITIONER:
------------------ M/S.EURO BUSINESS SYSTEM 5TH FLOOR, BLOCK 1, NEW BUS STAND THAVAKKARA, KANNUR-670 001 REPRESENTED BY ITS PARTNER, MR. PRAKASH T.
BY ADVS.SRI.M.GOPIKRISHNAN NAMBIAR SRI.P.GOPINATH SRI.P.BENNY THOMAS SRI.K.JOHN MATHAI SRI.JOSON MANAVALAN SRI.KURYAN THOMAS SRI.RAJA KANNAN RESPONDENTS:
---------------------- 1.
STATE OF KERALA REPRESENTED BY ITS SECRETARY TO GOVERNMENT TAXES DEPARTMENT, SECRETARIAT THIRUVANANTHAPURAM-695 001.
2.
THE COMMERCIAL TAX OFFICER, 3RD CIRCLE KANNUR-670 012.
3.
THE COMMERCIAL TAX INSPECTOR COMMERCIAL TAX CHECKPOST WALAYAR-678 624.
4.
THE INTELLIGENCE OFFICER (IB) COMMERCIAL TAXES, MATTANCHERRY AT MINI CIVIL STATION ALUVA-683 101.
BY GOVERNMENT PLEADER SRI. S. SUJITH KUMAR THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 27-10-2015, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
WP(C).No. 32631 of 2015 (D) APPENDIX PETITIONER'S EXHIBITS:- EXHIBIT P1 - COPY OF THE NOTICE DATED 08.10.2015, ISSUED U/S. 47(2) OF THE KVAT ACT BY THE 3RD RESPONDENT.
EXHIBIT P2 - COPY OF THE INVOICE NO.160200349 DATED 30.09.2015, WHICH ACCOMPANIED THE INTER-STATE CONSIGNMENT. EXHIBIT P3 - COPY OF THE TRANSACTION SLIP DATED 02.10.2015, GENERATED BY THE TRANSPORTER, GATI.
EXHIBIT P4 - COPY OF THE REPLY DATED 14.10.2015 (WITH ANNEXURES), SUBMITTED BY THE PETITIONER BEFORE THE 3RD RESPONDENT.
EXHIBIT P5 - COPY OF THE ORDER DATED 16.10.2015 PASSED BY THE HON'BLE COURT IN WP(C) NO.22343 OF 2015.
RESPONDENTS' EXHIBITS:- NIL //TRUE COPY// P.A. TO JUDGE sp
K. VINOD CHANDRAN, J -------------------------------------------- W.P(C) No.32631 of 2015 -------------------------------------------- Dated this the 27th day of October, 2015
JUDGMENT
The petitioner is a dealer within the State of Kerala, who has transported interstate, Multi-Function Printers, which is detained at the Checkpost as is indicated at Ext.P1. The reason for detention and the demand for security deposit at twice the value of tax sought to be evaded, is on the ground of misclassification. The Department contends that, by misclassifying the goods, the petitioner has sought to evade tax. Even in penalty matters, this Court has held that misclassification would be best looked at by the Assessing Officer and not by the Intelligence Officer. The principle is more so applicable herein. The detention has been made by the Checkpost authorities, which can be only on the ground of suspicion of evasion of tax. A mere misclassification, which is discernible from the records, cannot lead to a conclusion of
W.P(C) No.32631 of 2015 evasion. The issue with respect to whether the higher rate of tax is applicable cannot be looked at as an issue of evasion of tax. In any event, the petitioner shall be allowed release of goods on execution of a simple bond and adjudication proceedings shall be completed expeditiously untrammeled by any observation herein, but however regulated by the judgments of this Court. The writ petition is disposed of.
K. VINOD CHANDRAN, JUDGE.
sp/27/10/15