Mandatory declaration for imported goods in Kerala is essential; missing or defective transport documents can justify detention and penalty.

For imported goods brought into Kerala by air, coastal cargo or rail, the importer must furnish the prescribed declaration on arrival before the jurisdictional Commercial Tax Officer and retain the acknowledged copy with the goods during further transport. Rule 66(6)(ba) prescribes Form 8FA for this purpose. Where the declaration is absent and the delivery notes or invoices are defective, the transport documents may be treated as not proper or genuine, enabling detention under section 47(2) on suspicion that the goods are not covered by proper and genuine documents. In that situation, section 47(6) permits penalty, unless the person concerned discharges the burden of showing absence of tax evasion.

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Issues: Whether penalty and detention under the Kerala Value Added Tax Act, 2003 were justified for movement of imported goods by air without the declaration contemplated under section 46(3)(e) and the prescribed form under Rule 66(6)(ba) of the Kerala Value Added Tax Rules, 2005.

Analysis: Section 46(3)(e) of the Kerala Value Added Tax Act, 2003 requires an importer of goods brought into the State through coastal cargo, air or railways to furnish the prescribed declaration before the jurisdictional Commercial Tax Officer on arrival, and to keep an acknowledged copy with the goods during further transport. Rule 66(6)(ba) of the Kerala Value Added Tax Rules, 2005 prescribes Form 8FA for that purpose. The absence of the prescribed declaration and defects in the delivery notes and invoices rendered the accompanying documents not proper or genuine. In such circumstances, section 47(2) authorises detention where the officer has reason to suspect that the goods are not covered by proper and genuine documents, and section 47(6) permits imposition of penalty. The burden to show absence of tax evasion was not discharged by the petitioner.

Conclusion: The penalty and detention were validly sustained, and the challenge to the Tribunal's order failed.

Ratio Decidendi: Where goods are imported into the State through air or similar modes, the statutory declaration prescribed under section 46(3)(e) and the corresponding rule is mandatory, and failure to produce it with otherwise defective transport documents furnishes sufficient basis for detention and penalty under section 47.

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