9911796707
TMI Blog1996 (9) TMI 575X X X X Extracts X X X X X X X X Extracts X X X X ..... l documents. But, the second respondent detained the goods and issued exhibit P7 notice under section 29A of the Kerala General Sales Tax Act (hereinafter referred to as "the Act"). The grounds for detention are: (1) The date noted in the delivery note is March 1, 1996 and the reason for delay in despatch is not explained. (2) Though the goods were consigned from Kottayam to Calcutta, the vehicle was intercepted at Podiyedi on the way to Kayamkulam and the change of route was not explained. Hence evasion was suspected. 2.. On receipt of exhibit P7, petitioner got release of the goods on executing bank guarantee for an amount of Rs. 1,03,216. Subsequently, the petitioner filed objection to the notice. He was also heard by the third respo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... order and sending it to the assessee. But on June 18, 1996, the bank has been intimated to release the amount covered by the bank guarantee in view of the order imposing penalty. This was a short letter and therefore it was prepared immediately and sent to the bank. On receipt of the intimation from the third respondent, the bank released the amount and it has been remitted as per demand draft dated June 19, 1996. This has been done also for the reason that as per the convention two weeks prior information should be given for encashing the bank guarantee covering higher amounts. Further the bank guarantee is to expire on July 7, 1996. The third respondent submits that the order imposing penalty and the intimation to the bank have been dra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed against and the third respondent had fallen into a legal error by his over enthusiasm and this has adversely affected the petitioner. 5.. Under the proviso to section 29A(2) of the Act the officer may allow the goods to be transported on the owner of the goods or his representative or the driver or other person in-charge of the vehicle or vessel executing a bond with or without sureties for securing the amount due as security. Thereafter, the officer detaining the goods has to enquire about the question whether there has been attempt to evade tax. Under sub-section (4) of section 29A, after enquiry and after hearing the owner of the goods, the officer shall, by order impose on the owner of the goods a penalty not exceeding twice the am ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urity bond with or without surety. 7.. In this case we find that the order imposing penalty, according to the third respondent was passed on June 15, 1996. Annexure P3 does not show when it was communicated to the petitioner. On the same day, i.e., on June 15, 1996, the third respondent intimates the bank to enforce the bank guarantee and by letter dated June 19, 1996, the bank informs the petitioner that the amount has been paid to the department. The explanation given by the third respondent is that annexure P3 is a long order. Further, he states that the bank guarantee will expire on July 7, 1996 and hence he was forced to encash the bank guarantee. The explanation given is not acceptable. The third respondent is empowered under the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t any rate within three months from today. If the appellate authority reduces the amount of penalty or orders that no amount of penalty is leviable, the actual amount due to the petitioner will be returned to the petitioner within a period of one month from the date of order failing which that amount will entail interest at the rate of 12 per cent per annum. In the result, I quash exhibit P21. I direct an amount of Rs. 2,000 (rupees two thousand only) to be paid as costs to the petitioner. The amount will be paid by the respondents within a period of one month from today. Original petition is disposed of as above. Order on C.M.P. No. 17533 of 1996 in O.P. No. 10233 of 1996 dismissed. Petition allowed. - - TaxTMI - TMITax - CST ..... X X X X Extracts X X X X X X X X Extracts X X X X
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