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2015 (9) TMI 1538 - KERALA HIGH COURTDetention of goods - the consignee is not a registered dealer under the KVAT Act - demand of security deposit - petitioner claim that goods should not be detained for want of registration under the KVAT Act, as the petitioner is only a drug and food testing laboratory, which purchases goods from other States on the strength of online Form No.16, which itself proves that the goods are purchased by the petitioner for own use - Held that: - this Court granted an interim direction to release the goods detained on executing a simple bond. Detention of goods - the item chemicals and process pumps are not considered for own use purpose under the KVAT Act - petitioner case is that they are only a drug and food testing laboratory, which purchases goods from other States on the strength of online Form No.16, which itself proves that the goods are purchased for own use - Held that: - the officer in charge of the notified area or the empowered officer can detain the goods under transit covered by a certificate of ownership in Form No.16, if he has reason to suspect that the goods are transported into the State by persons other than registered dealers on the pretext of 'own use'. When the 2nd respondent in these writ petitions has ample power by virtue of sub-section (2) of Section 47 of the KVAT Act to intercept the goods in transit and demand security, if he has reason to suspect that the petitioner is attempting to evade payment of the tax due under the said Act, the issuance of Ext.P4 detention notices cannot, in any way, be termed as an act done without any authority of law, warranting an interference of this Court under Article 226 of the Constitution of India. Merely for the reason that the goods are transported into the State on the strength of declarations made in Form No.16, the petitioner is not legally entitled for an order restraining the respondents and all check post authorities in the State from detaining such goods for want of registration under the KVAT Act. Therefore, the petitioner is not entitled for the reliefs prayed for in these writ petitions. Petition dismissed.
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