2004 (6) TMI 616 - HC - VAT and Sales Tax

Summary

Issues:
1. Liability of the petitioner to pay monthly tax under Kerala Tax on Entry of Goods into Local Areas Rules, 1994.
2. Detention of goods by check-post authorities due to concerns about unscrupulous dealers.
3. Procedure for releasing goods and verification of returns by the assessing officer.
4. Directions to check-post authorities and Commissioner of Commercial Taxes for future consignments.

Analysis:
1. The petitioner, a registered dealer bringing goods from outside the State subject to entry tax, claimed liability to pay monthly tax along with the return on the 10th of every month as per rule 4(1) of the Kerala Tax on Entry of Goods into Local Areas Rules, 1994. The petitioner sought a direction for the check-post authorities not to detain the goods but to release them, emphasizing their compliance with filing returns and remitting tax regularly.

2. The Government Pleader raised concerns about unscrupulous dealers misusing the system by bringing goods in the name of reputed companies, potentially leading to the detention of goods until verification. The need for the petitioner to prove ownership of goods at the check-post was highlighted to prevent unauthorized consignments from being released.

3. The judgment directed the check-post authorities to release goods upon the petitioner's production of a true copy of the registration certificate issued by the assessing authority and subsequent confirmation at each arrival of goods. Upon receipt of confirmation and proper documentation, the check-post authorities were instructed to release goods without collecting entry tax, forwarding the file to the assessing officer for verification of returns and tax collection.

4. In conclusion, the court disposed of the writ petition by providing specific directions for the release of future consignments to the petitioner under the outlined terms. Additionally, the Commissioner of Commercial Taxes was tasked with examining the matter and issuing appropriate instructions to ensure compliance and cover all dealers, thereby addressing concerns related to the liability of dealers under the entry tax rules.