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1989 (9) TMI 368 - HC - VAT and Sales Tax
Issues:
1. Detention of goods at check-post for suspected tax evasion due to unsigned declaration. 2. Interpretation of the term "consignor" under the Kerala General Sales Tax Act. 3. Direction for further investigation by the authority concerned. 4. Availability of alternate remedy through filing an appeal before the appellate authority. Analysis: 1. The petitioners purchased goods from Pondicherry Distilleries and were transporting them to Mahe when the goods were detained at a check-post in Kerala due to a defect in the declaration form 27B, which was not signed by the consignor, leading to suspicion of tax evasion. 2. The term "consignor" was interpreted by the court based on legal principles and dictionary definitions, concluding that the consignor is the one who sends or consigns the goods, not necessarily the manufacturer or seller. In this case, the petitioners, who booked the vehicle for transportation, were considered the consignors as they were the ones sending the goods. 3. While the goods were released following the court's directions, the court noted the need for further investigation into other aspects related to the case. The court directed the concerned authority to conduct a detailed investigation promptly, within two months from the date of the judgment, to address these unresolved matters. 4. The court highlighted that if the petitioners are dissatisfied with the authority's final decision after the investigation, they have the right to challenge it by filing an appeal before the appellate authority under section 34 of the Kerala General Sales Tax Act, providing them with an effective alternate remedy. The original petitions were disposed of accordingly, emphasizing the availability of this legal recourse to the petitioners.
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