The petitioner is aggrieved of the detention of goods brought by him (on the strength of Exts.P4 and P5), which was detained by the 1st respondent/The Commercial Tax Inspector, issuing Ext.P6 notice under Section 47(2) of the KVAT Act doubting evasion of tax and demanding security deposit as specified therein, which made the petitioner to approach this Court by filing the writ petition.
2. Heard the learned Government Pleader appearing for the respondents. The defects noted as per Ext.P6 are as follows:
1. The goods are transported with the strength of Form No.16, but mere photocopy of the same is produced for verification.
2. From the documents accompanied (i.e., a letter of M/s ARV Banquet & Convention Centre, Kodungallur dated 18.10.2014) it is clear that the transaction under question is in W.P.(C) No.29650 of 2014 2 the course of a works contract awarded by the ARV Banquet & Convention Centre, Kodungallur. But the non-liablity to pay tax either by consignee or consigner under KVAT Act is not proved, as there is a transfer of goods in the course of work contract in the State.
3) ARV Banquet & Convention Centre, Kodungallur is a registered dealer, but, the same is concealed in Column No.8 of Form No.16.
The goods had to be detained in tune with the relevant provisions of law, doubting evasion of tax, demanding security deposit, in view of the conscious attempt to defraud the revenue, submits the learned Government Pleader.
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 W.P.(C) No.29650 of 2014 3 forthwith, on executing a 'simple bond' without sureties for the amount demanded as per Ext.P6. This however shall be without prejudice to the rights and 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.
The writ petition is disposed of.
Sd/-
P.R. RAMACHANDRA MENON JUDGE.
NS