The petitioner is a registered dealer under the Kerala Value Added Tax Act and engaged in the business of wood products. The grievance of the petitioner is that, while the petitioner was transporting two machines in the vehicles bearing No. KA 01 AD 4294 and TN 67 A 8073 for own use, they were intercepted by the first respondent issuing Ext.P5 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 reasons for detention, as shown in Ext. P2 notice, are in the following W.P.(C) No. 27359 of 2014 : 2 :
terms :
“The vehicles with goods intercepted and checked CTCP Walayar on 12.10.2014 at 09.00 hrs, On verification, it is found that 2 sets of machinery transported in two vehicles is detailed above. On verification on KVATIS it found that the consignee is a registered works contractor and as per the Registration Certificate, the consignee is not authorised to transport the above machinery and parts. The documetns accompanied with the transport of goods to prove that the goods meant for own use. In the circumstances, it is suspected that the consignee transporting goods for resale. So wilful attempt to evade payment of tax suspected. Though transporting unauthorised goods for resale. Also suspected the genuineness of transport of goods. So demanded security deposit on the estimated value of Rs. 3,40,000/-.”
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. But, for that reason, the goods need not be detained any further and the same shall be released to the petitioners forthwith, on executing a 'simple bond' without sureties W.P.(C) No. 27359 of 2014 : 3 :
for the amount demanded vide Ext. P2 notice. This will be without prejudice to the rights and liberties of the respondents to pursue 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 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)