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 which was detained by the 1st respondent 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 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.P1 in the following terms:
“As per 8F declaration submitted by the consignee the commodity is declared as 'Iron and steel - flat Rolled products cold rolled' with a tax rate of 5% used KVAT Act 2003. But on physical verification the commodity is ironing table which comes under furniture with a tax rate of 14.5%. As per invoice only the brand name of the commodity is mentioned and hence the dealer has willfully misclassified the commodity in order to evade tax. Hence value estimated SD demanded.”
W.P.C. No. 33309 of 2014 -2-
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 satisfying 25% of the security deposit demanded vide Ext. P1 and 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 concerned respondent for further steps.
Writ petition is disposed of.
P.R. RAMACHANDRA MENON, JUDGE.
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