The petitioner is a registered dealer under the Kerala Value Added Tax Act, 2003 and engaged in the business of medical equipments. In the course of business operation, the petitioner sent a consignment covered Ext. P1 invoice. While the goods were being transported, they were intercepted by the second respondent issuing Ext. P2 notice under Section 47 (2) of the KVAT Act, doubting evasion of tax and demanding security deposit to the extent as specified, which made the petitioner to approach this Court for immediate intervention.
2. The learned counsel for the petitioner submits that absolutely no offence has been committed by the petitioner and there was no attempt on the part of the petitioner to evade tax. It is stated that the objections raised by the respondents are of technical in nature.
3. The learned Government Pleader submits that the goods were detained doubting genuineness of the documents. The reason W.P.(C) No. 32588 of 2014 : 2 :
for detention, as shown in Ext. P2, is in the following terms:
“ The vehicle with load intercepted and checked at Vengallur while it was plying towards Thodupuzha direction. The invoice accompanied along with the consignment is issued by M/s Hitech Markerting Service, Parappanangadi, Malappuram, TIN 32100649852 to Noorul Islam Trust, Reg. No. 46/IV/2005, V/64, Administrative Block - AL - Azhas Campus, Perumpillichira P.O. , Thodupuzha.
As per the statement of the driver of the vehicle, the consignment is to be delivered to Al-Azhar, Medical College, Perumpillichira, Thodupuzha.
As per the provisions of the KVAT Act 2003, the Al-Azhar hospital is not seen regularized. So, the consignee has violated Section 15 of the KVAT Act 2003 On the other hands, M/s Hitech Marketing service has raised the invoice, to M/s Noorul Islam Trust, Perumpillichipra P.O, Thodupuzha, an uregistered dealer. The consignee has effected a bulk purchase of medical equipments for Rs.1989,292.68. The consignee has violated S. 15 of the KVAT Act 2003, in order to suppress the purchase so effected colliding with the consignor, to evade the payment of tax legitimate to the Government Exchequer.
So, an attempt of evasion of tax is suspected in W.P.(C) No. 32588 of 2014 : 3 :
this case and security deposit demanded accordingly .”
4. Considering the facts and circumstances, this Court finds that the actual factual particulars can be unearthed only in the course of adjudication proceedings. But for that reason, the goods need not be detained any further and the same shall be released to the petitioner, on condition that, the petitioner furnishes a 'Simple Bond' without sureties for the amount shown in Ext. P2. This will be without prejudice to the rights and liberties of the respondents to pursue 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 this judgment along with copy of the writ petition before the concerned respondent for further steps.
The Writ Petition is disposed of.
kmd Sd/-
P. R. RAMACHANDRA MENON, (JUDGE)