The petitioner is the registered dealer under the Kerala Value Added Tax Act 2003 and engaged in the business of ceramic crockery, kitchen ware etc. The grievance of the petitioner is that, while the petitioner was effecting stock transfer in the vehicle bearing No. MP 07 HB 1803, they were intercepted by the first respondent issuing Ext. P6 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. The reason for detention, as shown in Ext. P6 is in the following terms :
“Goods under transport are not accompanied by any documents prescribed under section 46 (3) of the KVAT Act 2003”.
4. Heard the learned Government Pleader as well.
W.P.(C) No. 27354 of 2014 : 2 :
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 petitioner forthwith, on condition that, the petitioner satisfies 25 % of security demanded vide Ext. P6 notice and furnishes 'Simple Bond' without sureties for the balance amount. 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)