The goods being transported in the vehicle bearing No. TN 36X/7331 were intercepted and detained on 13.09.2014 by the first respondent/Intelligence Inspector under Section 47(2) of the KVAT Act. The petitioner is a partnership firm engaged in the purchase and sale of Homoeopathic medicines and cosmetics and is having certificate of Registration bearing No.TIN 32071895188, with validity from 29.09.2014
2. Heard the learned Government Pleader, who submits with reference to the materials on record that the reason for detention is that the petitioner was not a registered dealer under KVAT Act and that the consignment was an interstate purchase of goods in bulk quantity for resale; and hence that there was every reason to doubt evasion of tax, which justifies issuance of Exts. P3 and P5, demanding security deposit.
3. This Court does not propose to go into the merits of the case, as the matter requires to be finalised by way of adjudication proceedings. However, this Court does not find it necessary to detain the goods any further and the same shall be W.P.(C)No.28285 OF 2014 2 released to the petitioner on condition that the petitioner deposits 25% of the amount shown in Ext.P5 and furnishes a 'simple bond' without sureties for the balance amount. It is made clear that this will be without prejudice to the rights of the respondents to pursue the adjudication proceedings, which exercise shall be completed in accordance with law, as expeditiously as possible, at any rate, within two months from the date of receipt of a copy of the judgment. The petitioner shall produce a copy of the judgment along with a copy of the writ petition before the concerned respondent for further steps.
The Writ Petition is disposed of as above.
P.R.RAMACHANDRA MENON JUDGE lk