The petitioner is a registered dealer under the Kerala Value Added Tax Act and engaged in the business of granite and marble slabs. The grievance of the petitioner is that, while the petitioner was transporting the goods covered by Ext. P1 invoice in the vehicle bearing No. AP 20 TC 4199, it was intercepted by the first respondent issuing Ext. P2 notice under Section 47 (2) of the KVAT Act, doubting evasion of tax and demanding security deposit to the extent as specified, which made the petitioner to approach this Court for immediate intervention.
2. The learned counsel for the petitioner submits that absolutely no offence has been committed by the petitioner and there was no attempt on the part of the petitioner to evade tax. It is stated that the goods were supported by all the necessary documents as contemplated under Section 46 (3) of the KVAT Act. The reason for detention, as shown in Ext. P2 notice, is in the following terms :
W.P.(C) No. 27721 of 2014 : 2 :
“The vehicle with goods checked at CTCP Walayar on 21.10.2014. On physical verification, it is found that an excess quantity of 300 sq. ft. of granite slabs in the vehicle after deducting sufficient quantity towards cracks and uneven edges as per instructions contained in the Circular No. 18/2012 of the Commissioner of Commercial Taxes, Trivandrum Quantity as per accompanied documents = 2844.97 sq.ft Quantity after physical verification Excess= 3144.97 sq.ft Excess Quantity = 300 sq.ft.
Hence the SD demanded on the estimated value of excess quantity of 300 Sq.ft. Granite slabs. .”
The learned counsel for the petitioner submits that the security demanded is on the higher side and that the 1st respondent has not effected the deduction as per the Circular issued by the Commissioner of Commercial Taxes.
4. Heard the learned Government Pleader as well.
5. Considering the facts and circumstances, this Court finds that this is a matter which requires to be finalized by way of adjudication proceedings. The security deposit demanded is only Rs. 8,700/-. The goods shall be released to the petitioner forthwith, on satisfaction of the amount demanded vide Ext. P2 W.P.(C) No. 27721 of 2014 : 3 :
notice under protest. It is made clear that the amount so deposited by the petitioner will be subject to orders to be passed by the adjudication authority, 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 this judgment along with copy of the writ petition before the concerned respondent for further steps.
The Writ Petition is disposed of.
kmd Sd/-
P. R. RAMACHANDRA MENON, (JUDGE)