2013 (3) TMI 297 - HC - VAT and Sales Tax

Detention of a consignment of 36 barrels of lubricant oil - as per the dept. the consignee is not a registered dealer under the KVAT Act and the consignment is bulk quantity of lubricant oil for ship - as per petitioner the goods, having already suffered CST at 14.5%, there was irregularity justifying detention - Held that - Unable to see any irregularity justifying detention. Therefore left open to the respondents to complete the adjudication in terms of the provisions of the Act and direct that the consignment detained as per Ext.P4 notice of detention under Section 47(2) of the KVAT Act be released,subject to the petitioner executing a bond without sureties.

Summary

The High Court of Kerala ruled in a writ petition challenging the detention of a consignment of lubricant oil. The petitioner argued that the goods had already been taxed under the CST Act and should be released. The court found no irregularity justifying detention and ordered the release of the consignment upon the petitioner executing a bond without sureties.