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 Exts.P2 to P6(b)], by the 1st respondent/Commercial Tax Inspector issuing Ext.P1 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 respondents 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.P1 in the following terms:
“The goods under transport are good quality in Turmeric transported from Kalady to Hriyana. The value of the goods under transport is too low when compared with the prevailing market value of the goods. This has been done with a view to lesser the sale value and thereby evade payment of tax due to Govt. Evasion of tax is suspected. Hence SD estimated for the value estimated of Rs.4,80,000/-”
3. After hearing both the sides, this Court finds that this is a matter which requires to be finalized by way of adjudication WP(c). No.34737 of 2014 2 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 1st 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 1st respondent for further steps.
Writ petition is disposed of.
Sd/-
P.R. RAMACHANDRA MENON, JUDGE.
Pn