i -1 3486/09/TX

FromThe Commissi0ner

ToThe Prirrcipal secretary to Government

Taxes (D) DeParlmentGovernment of Kerala

Cffice of the CommissioL r

Commercial Taxes

Thiruvananihapruam dtd. 25-03-2009

Sir,Sub:HighhandedactionofMr'safiyullaSyed'DySP'VACB-Factualreport-

submitted - reg'

Ref: Nil.

TheVACBteamofThrissurdistrictinspectedofficeofthelntelligenceformationof commercial raxes Department on t,a-og-zobg .t 4 pm. The VACB team was headed

by Sri. Safiyulla SV"O,"OV irperlntenOent oi pofi""' They straight away entered into the

office of lntelligence"btri'r"i, bquao ruoli, squuo No- 2 1d lniesiigation Branch of the

interigence formation. The VACB ,u#' r"q]r*t"J *'". commerciar Taxes Department

officiars to decrare the personur "rorni in in"ir custody. They proceeded accordingly'

Thereafter, the Dy. S.P. specificaLty requett"Jitt"in filbs relating to the some dealers'

*f,i.f't *"tu franOed over by the officials'

The lntelligence officer squad No'2 attached to the office of the lnspecting Asst'

Commissioner (lntelligence), Cornrn"iJi'r -iu*"t'

Thrissur while conducting vehicle

checking at Poonkun-n"rn,'ihri.su, onlZ-Oi-2009 had iniercepted and checked a

vehicle bearing No.KL-11-D 5g1g J"rr;,ing pynkoda,wooden logs on board' on

verification of the documents u."ornlfrn'yi;"n iti" ooofs, certain points leading to a

reasonable suspicion about attenrpt i!-"""0" payment. of tax due to the government

were noiiced. Hence the intelligen"" ri'i'"1t"1'tt'9r't9o to the Squad has issued form

17A notice under section 47(2) c,t irl."kvAr Act demanding a security deposit of

Rs.308361 On receipt of the saiO notlcl, ttt* i'iu"' raised a cJntention that the goods

are being tr"nrpoJul'for own use foi *i-'i"t"' no documents were produced' There are

earlier instances oioltection of transpo't oitito"r from Movattupuzha to Malappuram tn

the guise of own tr",-*f..'l.f. on O*t"li;t; iil transporters have remitied the security

depositsanoreteas"otr,uvehicle.s"-pn*'r".l"l:i"wasreasontosuspectthebonafids of the ttu*pottlor which statutory notice was issued'

TheVigilanceDySPl/lr.SafiyullaSyedhSspecificallyaskedtoreleasethevehicle unconditionally. since tne oiiect[i- of the Dy sP was not conceded' at the

instance of the Dy SP, the driver r-'"0?ii"J'" Jectaration in Form'16 on 19/3i2009'

ln order to gather details the intelligence squad had conducted ehquiry in the local

area of the consignee including the rtrli"r,r.ur"'Panchayat office and Village office' ln

[,rf"nquity the following facts were noticed:-

)Thesaidconsigneeiudealingintimber/firewood/cutendslocally.

2) The consignee haci. never aRprglched ]l:,:"nchayat authorities or village

authority for obtaining any siatutory permiss'ron for the construction of a

r-'r - I ltlllriFrrsl:r"'*"""------!

GticE or rxE coillhtlsslor';';q ?

corfiMqq,ctAl TAXES ir t- *.

KERALA, TH I Ri,l \tA, ;'i Ai=iT H AP u R'*'[1

residential building.

ACT 2O*5

li

There is a timber depot within a span of threg hundred meters of his residencewherein all sorts of wood are available. when'the lntelligence officer enquired inthat saw mill it is learnt from the workers ihat one .on*iinr*nt due to them washeld by "sales tax auihorities some where in Thrissur". S-o from this it is clear thatthe'consigriment is not for the said Pokker, but to the sawmill of Aliyar foreffecting resale.

Even though similar consignment of goods are available to the consignee fromhis own district or nearby district, the story that the dealer had ventured iopurchase goods from a far away place spending a much higher value as lorryfreight is suspicious.

5) ln this case, the consigtrEr M/s. M.M Saw Mill & lndustries, Moovattupuzha is aregistered dealer on the roll of VAT Special circle perumbavoor and the saidtimber 6eP?t- in the nearby place of the consignee is run oy one Ariy4 who alsobelongs to Moovattupuzha.lt is suspected that the said Aliyar is a benami of theconsigner' So. there ls every. possibility of collusion between the consigner,consignee and the said Aliyar in tra.nsporting goods in the name oi pokker, theconsignee for effecting unaccounted sales r^Juiltting in evasion of iax legally dueto state.

ln addition to that it is a fact that neither the consign@r nor the consigneeappeared or filed any reply to the statutory notice issued by the lntelligence lnspector sofar' Hence a notice rejecting the form-16 froducecl ny ir,* orioer was issr-red to the drirrer.But he refused to accept the same. Hence the noiice was served by affixture on thevehicle.

It may also be noted thai the party had fited wfr(c) 9393i0g in the Hon t-.lighcouri in which the Hon High court refused to interfere with the detention. The couri haddirected the petitioner to flle reply to the notice which is required to be disposed by thelntelligence officer within 24 hours on receipt of the same.The action''of the Dy SP Mr. Safiyulla Syed borders on offences under section 70of the KVAT Act and relevant provisions in the penat coJe relating to obstructing a publicservant from the discharge of his statutory duties. His action would have caused revenueloss and undue gain to the tax evader. Moreover, sri. sariyuila syed has used the mostobnoxious and foul language against the officers and even manlrandled the staff duringinspection in-frorrt or gene-t pioti" and dealers, which has caused irreparable damageto the digniiy of the Department as a whole.

Syed has to bln the

:i::::^r:r.T:"::jjl hlghhanded iilegat actions on the parr of Mr safiyuila[::Y?j Y:Y serior,*l]l and appropriat* exemptary disciptinary actibe initiated

r __.._-_,f, s,,v eFy,v}/,rqre encrilptclty qtSutpilnary acllon mayt him so that such iilegar action wiil not be repeateo ii., iririu.

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