The petitioner, a Company registered under the Indian Companies Act, 1956 and is a registered dealer under the provisions of KVAT Act, is aggrieved of the detention of goods brought by them (on the strength of Exts.P1 & P2), which was detained by the respondents, 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:
“The vehicle with goods inspected at CTCP Walayar. On verification of the accompanying document the following defects are noted:
(1) There is no document accompanying with the consignment that prescribed U/S 46(3) A.
(2) The goods are imported into this State for supplying on rental basis, which is taxable under “Right to use” category.
(3) The owner of the goods has no Registration in Kerala under KVAT Act, 2003. Hence the evasion of tax is suspected. Value estimated and SD demanded.
The goods had to be detained in tune with the relevant provisions of law, doubting evasion of tax, demanding security W.P.(C) No.28660 of 2014 2 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 executing a 'simple bond' without sureties. 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 respondents, for further steps.
Writ petition is disposed of.
P.R. RAMACHANDRA MENON, JUDGE sp