The petitioner is aggrieved of the detention of goods brought by him (on the strength of Ext.P3), which was detained by the respondent, issuing Ext.P5 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 records that, because of the defects noted as per Ext.P5, the goods had to be detained in tune with the relevant provisions of law, doubting evasion of tax, and demanding security deposit.
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.
W.P.(C) No.34503 of 2014 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.P5 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 respondent 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.
P.R. RAMACHANDRA MENON, JUDGE.
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