The petitioner who is a registered dealer under the Kerala Value Added Tax Act, is aggrieved of the detention of goods brought by the petitioner (on the strength of Ext.P1 series invoices), by the 3rd respondent/Intelligence Inspector issuing Ext.P2 notice under Section 47(2) of the KVAT Act doubting evasion of tax and demanding security deposit as specified therein.
2. The learned Government Pleader appearing for the respondent submits on instructions and with reference to the materials on record that, the impugned notice was issued on noting the defect as mentioned in Ext.P2 in the following terms:
“The vehicle with foods intercepted and checked at Kooriyad. On verification of accompanying documents it is revealed that the consignment is billed to Puthiyara, Calicut. But the place of detention is entirely different place that is Kooriyad. Hence genuineness of document and transport is suspected as tax evasion there on. Hence Security deposit demanded on the estimated value by adding fright charges and gross profit viz. Rs.224450/- SD Rs.65090/-.
WP(c). No.35137 of 2014 2 Driver of the vehicle stated that the goods under transport is intended to unload at PKA Electricals, Kooriyad as per the direction of the consignor”
3. 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 for the balance amount. This however shall be without prejudice to the 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 respondent for further steps.
Writ petition is disposed of.
Sd/-
P.R. RAMACHANDRA MENON, JUDGE.
Pn