The petitioner is a registered dealer under the Kerala Value Added Tax Act on the roles of the 2nd respondent. The petitioner is dealing with electronic goods and home appliances. The goods transported by the petitioner in vehicle No.TN-02-AC-7741 were intercepted by the 1st respondent issuing Ext.P10 notice under Section 47(2) of the KVAT Act, doubting evasion of tax and demanding security deposit as specified therein. The explanation given by the petitioner as per Ext.P11 was not acted upon, which made the petitioner to approach this Court by filing the writ petition.
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.P10 in the following terms:
“On verification of KVAT is Data the following defects were noticed; (1) The dealer is not authorised to deal the goods under transport (2) the dealer is not authorised to effect import purchase. The value of the goods fairly and reasonably estimated at Rs.40,25,000/-.”
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3. The learned counsel for the petitioner submits that, the petitioner had already submitted Ext.P5 request to amend the registration certificate. A copy of the Certificate dated 29.09.2014 issued by the competent authority has been placed before this Court which reads as follows:
“This is to certify that M/s. Electra Homates, Cherthala is a live assessee on the rolls of this office bearing TIN 32040844885C. The dealer is carrying out business in the trading of electronic goods and Home appliances including LED/LCD TVs and parts, Induction Cooker and parts. The assessee is authorized for the interstate purchase and import of the above commodities as per this office records. The dealer has filed returns upto date.
This certificate is issued on the request of the assessee and intended to be produced before the Intelligence Officer, Squad No.II, Mattancherry at Karukutty and is valid for only 15 days from the date of issue.”
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 executing a 'simple bond', without sureties, for the requisite demand. This however shall be without prejudice to the rights and W.P(C). No. 25317 of 2014 3 liberties of the 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 respondent for further steps.
Writ petition is disposed of.
Sd/-
P.R. RAMACHANDRA MENON, JUDGE.
Pn