The petitioner is aggrieved of the detention of goods brought by them (on the strength of Form 8F Goods transfer note No.148 dated 29.11.2014), which was detained by the second respondent/Intelligence Inspector, 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 respondents submits on instructions and with reference to the materials on record that, the defects noted as per Ext.P1 are as follows:
“The vehicle with goods intercepted at Walayar Checkpost. On verification of accompanied documents, the consignment of stock transferring the goods to Baroda. But Form No.15 is not accompanying with the consignment for stock transfer. Form No.15 is mandatory as per KVAT Act 2003. Hence genuineness of transport and resale is suspected. Hence SD demanded to stop the evasion.”
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, W.P.(C) No.32736 of 2014 2 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.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 second 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 second respondent, for further steps.
The writ petition is disposed of.
P.R. RAMACHANDRA MENON, JUDGE.
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