The petitioner is aggrieved of the detention of goods brought by him (on the strength of Ext.P6), which was detained by the respondent/The Commercial Tax Inspector, issuing Ext.P7 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.P7 are as follows:
“Goods under transport are not accompanied by any documents, which reflects actual value of the goods, as prescribed under Section 46(3) of the KVAT Act, 2003. On physical verification, it is seen that the vehicle contains 129 Boxes only. But the quantity shown in the accompanying document (Labour charge invoice) W.P.(C) No.29649 of 2014 2 is 132 Boxes. Hence, both are contradictory. As the goods are export quality, it is fair and reasonable to estimate the value to Rs.67,32,000/-. For the above reasons, the genuineness of the documents produced bonafides of the transport and attempt to evade payment of tax payable under the Kerala Value Added Tax Act, 2003 is suspected.”
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. 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.P7 and on executing a 'simple bond'
W.P.(C) No.29649 of 2014 3 without sureties for the balance amount. 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 respondent, for further steps.
The writ petition is disposed of.
Sd/-
P.R. RAMACHANDRA MENON, JUDGE NS