The petitioner is aggrieved of the detention of goods brought by him (on the strength of Exts.P1 & P3), which was detained by the 1st respondent/Commercial Tax Inspector, issuing Ext.P4 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 respondents submits on instructions and with reference to the materials on record that, the defects noted as per Ext.P4 are as follows:
“The goods under transport has been verified with the documents accompanied on which revealed that the dealer has quoted only Rs.850/- per Cubif Feet for the teak log transported. Verification revealed that the dealer has quoted the price below the prevailing market rate. Hence the price has fixed on the basis of the length and width and size of the log as below:-
225.66 Cubic Feet x Rs.1500- = Rs.338490.00 Less Admitted Value = Rs.191700.00 Excess = Rs.146790.00”
W.P.(C) No.31376 of 2014 2 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 forthwith, on satisfying '25%' of the security deposit demanded vide Ext.P4 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 W.P.(C) No.31376 of 2014 3 with a copy of the writ petition, before the 1st respondent, for further steps.
The writ petition is disposed of.
P.R. RAMACHANDRA MENON, JUDGE.
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