The petitioner is aggrieved of the detention of goods brought by him (on the strength of Exts.P1 and P2), which was detained by the first respondent/The Commercial Tax Inspector, issuing Ext.P4 notice under Section 47(2) of the KVAT Act doubting evasion of tax and demanding security deposit as specified therein, which made the petitioner to approach this Court by filing the writ petition.
2. The learned Government Pleader appearing for the respondents submits on instructions and with reference to the materials on record that, the defects noted as per Ext.P4 are as follows:
“The consignee is not a registered dealer under KVAT Act and not authorised to effect interstate purchase of said commodity. The goods under transport is suspected for resale within the State. Value of the goods estimated Rs.3,00,000/-.”
The goods had to be detained in tune with the relevant provisions of law, doubting evasion of tax, demanding security deposit, in view of the conscious attempt to defraud the revenue, W.P.(C) No.26757 of 2014 2 submits the learned Government Pleader.
3. Case of the petitioner is that the petitioner had purchased two residential flats in Heera Grace, Kowdiar, Trivandrum from M/s. Heera Construction Co.(P) Ltd., City Centre, 113, Patto Plaza, Panaji, Goa and having its Regional Office at Heera park, M.P. Appan Road, Vazuthacaud, Trivandrum. He has purchased Brused SS automatic 2 panel sliding doors (700 mm Door opening) 3 landing door & 1 cabin from K. Ramanathan & Co., Adayar, CH-20. The petitioner has paid higher rate of CST @ 14.5%. While the same was transporting to Trivandrum through Walayar Check Post the 1st respondent issued notice under Section 47(2) of Kerala Value Added Tax Act demanding security deposit.
4. After hearing both the sides, this Court finds that this is a matter which requires to be finalized by way of adjudication proceedings under Section 47(6) of the KVAT Act. But, for that reason, the goods need not be detained and the same shall be released to the petitioner forthwith, on executing a 'simple bond' without sureties. This, however, shall be without prejudice to the W.P.(C) No.26757 of 2014 3 rights and liberties of the respondent/competent authority to proceed with the adjudication proceedings, which shall be finalized in accordance with law, as expeditiously as possible at any rate, within 'three months' from the date of receipt of a copy of this judgment.
The petitioner shall produce a copy of the judgment, along with a copy of the writ petition, before the respondents, for further steps.
Writ petition is disposed of.
P.R. RAMACHANDRA MENON, JUDGE sp