The petitioner is a registered dealer under the Kerala Value Added Tax Act and the Central Sales Tax Act and engaged in the business of job works/works contracts. In connection with the work undertaken by the petitioner under the Kerala State Transport Project, the petitioner sought to transport “counter weight of mobile truck crane” in the vehicle bearing No KL 07 BZ 2859. In the course of transit, the same were intercepted by the respondent issuing Ext. P7 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 W.P.(C) No. 27374 of 2014 : 2 :
for detention, as shown in Ext. P7 notice, is in the following terms :
“ The consignment under transport is from Kadavanthara to Mattannur. On verification of the accompanying documents, it is found that no valid documents under Section 47 of the KVAT Act read with Rule 58 of KVAT Rules 2005 is attached along with the goods. Hence evasion of tax is suspected by way of sales in the State. Therefore, SD is demanded on the estimated value. VE Rs.10,00,000/-
S.D. @ 14.5 x 2 = 29 % = 2,90,000/-”
4. Heard the learned Government Pleader as well.
5. Considering the facts and circumstances, this Court finds that the correctness of the version can be unearthed only in the course 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 condition that, the petitioner furnishes 'Simple Bond' without sureties for the amount demanded vide Ext. P7 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.
W.P.(C) No. 27374 of 2014 : 3 :
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.
Sd/-
P. R. RAMACHANDRA MENON, (JUDGE) kmd