TaxTMI 
TaxTMI 
2014 (8) TMI 443
X X X X Extracts X X X X
X X X X Extracts X X X X
....City Police and the proceedings initiated by the Income Tax Department as also the Commercial Taxes Department of the State, for assessment, deeming such possession to be for the purpose of sale within the State, thus attracting levy under the Income Tax Act, 1961 as also the Kerala Value Added Tax Act, 2003. 2. On facts; suffice it to say that, on 15.01.2010, the shadow unit of the Kochi City Police conducted a raid in the business premises of the petitioner, on alleged information, of gold being possessed illegally by the petitioner. According to the petitioner, the raid commenced at 4.00 p.m on 15.01.2010. But the mahazar prepared, evidenced by Ext.P5 is dated 16.1.2010. This Court is not concerned with the procedure adopted or the va....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... fact, the pure gold bars coming to 3000 grams were issued by one dealer, by name Alapat Gold, who had purchased the same on various dates from the Bank of Nova Scotia. Ext.P13 and P13(a) are receipts issued in lieu of the purchase of bullion made by the Alapat Gold Den (P) Ltd. The gold bars are identified by the numbers, given in such official receipts, which according to the petitioner is clearly printed in the bars. 5. The dealers who issued Ext.P7 to P13 vouchers supported the case of the petitioner and admitted, before the authorities that the gold seized from the premises of the petitioner, belongs to them. The petitioner was entrusted with the same for distillation and conversion even according to such dealers. Petitioner h....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ing 2009-2010. The assessment completed for the assessment year 2010-2011, specifically dealt with the said issue as extracted hereunder:- 7.1 The claim of the assessee was verified. The six jewelers have confirmed that the gold seized belong to them. The confirmation filed by the jewelers as well their issue register/stock register showing the issue of gold to the assessee in the quantities claimed by the assessee, has been placed on file. So in the matter of gold seized, the claim of the assessee is accepted. Accordingly consequent action as provided in Section 153 C will be separately initiated. 9. Hence the proceedings initiated under the Income Tax Act, by the authority under the Act, found the contention of the petitioner to be ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ioner was issued with an order under Section 67(1) of the Kerala Value Added Tax Act, 2003 (for short "KVAT Act") wherein the penalty proceedings initiated as per Ext.P2 was concluded, imposing penalty at double the tax attempted to be evaded, which order was produced as Ext.P36 in O.P No.11000/2010. In the context of that, being an order passed subsequently, the petitioner rightly filed a further writ petition numbered as W.P(C) 16554/2014, challenging the imposition of penalty, by the order produced as Ext.P18, in the subsequent writ petition. 13. The pleadings are completed in the earlier writ petition and the only ground on which the subsequent order is assailed, is of limitation as provided under Section 67 of the KVAT Act. The matt....
X X X X Extracts X X X X
X X X X Extracts X X X X
....d on the specific words employed in Section 67. 16. The proviso to Section 67(1) reads as follows: Provided that the authority empowered under this section shall dispose of the case within three years from the date of detection of offence mentioned under this section except where the extension of time is granted by the Deputy Commissioner. The three year period was brought in by substitution as per the the Kerala Finance Act, 2005; prior to the seizure of gold, which is the subject matter of the writ petition. There is no contention by the State that at any point of time, extension was granted by the Deputy Commissioner. Ext.P18 definitely is beyond the period of limitation, as provided in the proviso. It is also to be noticed that if....
X X X X Extracts X X X X
X X X X Extracts X X X X
....sted towards the income tax dues imposed on the petitioner. What remains for consideration is the release of gold. W.P(C) No.16554/2014 is allowed, setting aside Ext.P18 order and the consequential demand made as per Ext.P1. W.P(C)11000 of 2010 as a consequence is allowed declaring that admittedly, there is no claim for the Income Tax Department or the Commercial Taxes Department; over the gold seized by Ext.P5 mahazar. 20. In such circumstance there shall be a further direction in W.P(C)11000/2010 , to the Commissioner of Income Tax, the 4th respondent to release the gold immediately to the petitioner, without fail and within two weeks from the date of production of the certified copy of this judgment. 21. It is pertinent that in Ext....