Wp(C)/17650/2014 Of The Deputy Commissioner (Intelligence), Commercial Taxes v. The Deputy Director Of Income Tax (Inv)-Ii, Ernakulam

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT: THE HONOURABLE MR.JUSTICE K.VINOD CHANDRAN TUESDAY, THE 22ND DAY OF JULY 2014/31ST ASHADHA, 1936 WP(C).No. 17650 of 2014 (E) ---------------------------- PETITIONER: -------------------------- THE DEPUTY COMMISSIONER (INTELLIGENCE), COMMERCIAL TAXES, ERNAKULAM. BY SPL.GOVERNMENT PLEADER SRI.GEORGE MECHERIL RESPONDENTS: ---------------------------- 1.THE DEPUTY DIRECTOR OF INCOME TAX (INV)-II, ERNAKULAM. ERNAKULAM. 2.M/S.FANCY DIAMONDA INDIA (P) LTD., 111, PRASAD CHAMBERS, OPERA HOUSE, MUMBAI - 400 004.111, PRASAD CHAMBERS, OPERA HOUSE, MUMBAI - 400 004. 3.PRATIK MEHTA, 12, SHOUBNA BUILDING,MATHURADAS ROAD, KANDIVIL (WEST), MUMBAI - 400 067.MATHURADAS ROAD, KANDIVIL (WEST), MUMBAI - 400 067. 4.APOORVA SHAH, 2-1, CHAROTAR PARK, OLD PADRA ROAD, BARODA - 390 020.OLD PADRA ROAD, BARODA - 390 020. R1 BY ADV. SRI. JOSE JOSEPH, SC, INCOME TAX THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 22-07-2014, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: K.VINOD CHANDRAN, J.--------------------------------------- W.P(C).No.17650 of 2014 ---------------------------------------- Dated this the 22[nd] day of July, 2014 J U D G M E N T Petitioner is the State, which seeks a stay of therelease of the diamond ornaments, directed to bereleased by the High Court of Bombay as per Ext.P15.The short facts are that the respondents 3 and 4 weredetained, at the airport by the Air Intelligence Unit, andhuge quantity of diamond jewellery were found in theirpossession. Since no proper documents, accompaniedsuch goods, the same was seized subsequently by theincome tax authorities under Sec.132 of the Income TaxAct, 1961. The income tax authorities also informed thecommercial tax authorities, within the State, about suchseizure. 2.A notice was issued, as Ext.P3 underSec.67(1), of the Kerala Value Added Tax Act, 2003alleging that the goods were intended for sale within W.P(C).No.17650 of 2014 2 the State of Kerala. Admittedly, an order was passedimposing penalty, at twice the amount of tax sought to beevaded, by Ext.P10. An appeal is said to be pending, inwhich no order of stay is passed. Demand notices havealso been issued. It was in the meantime, that the secondrespondent, who claimed ownership of the jewellery,approached the High Court of Bombay, within whosejurisdiction the respondents 2 to 4 function and the 2[nd]respondent is registered and as an assessee under theIncome Tax Act. The High Court of Bombay grantedrelease of the goods, as per Ext.P15. Petitioner-State hasfiled the above writ petition contending that the diamondjewellery, is not liable to be released, since theCommercial Tax Department has raised a claim over it.The jurisdictional aspects come to fore in considering theabove Writ Petition. 2.In any event, now it is brought to the notice ofthis Court, that under Sec.33 of the KVAT Act, 2003 theAssistant Commissioners, of the Commercial Tax Department have been notified, to exercise the functionsof a Collector, under the Kerala Revenue Recovery Act,1968. It is submitted by the Special GovernmentPleader (Taxes) appearing for the petitioner-State thatnow proceedings have been taken and the diamondjewellery, with the income tax department, have beenattached. In such circumstance, the writ petition is nolonger necessary. The writ petition is hence infructuous. Sbna Sd/-K.VINOD CHANDRAN, Judge