The petitioner who is a registered dealer under the Kerala Value Added Tax Act, is aggrieved of the detention of goods brought by the petitioner (on the strength of Exts.P1 to P3), which was detained by the 3rd respondent/Intelligence Officer, issuing Ext.P4 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 impugned notice was issued on noting the defect as mentioned in Ext.P4 in the following terms:
“1. As per the provisions of the Kerala Value Added Tax Act 2003 why hospital is liable to be get registered under the Act. But the consignee has no valid registration under the Act.
2. The consignor also has no valid registration under the KVAT Act 2003.
3. As per the accompanied Tax Invoices it is clearly declared that the consignee will remit 25% of the amount as advance and the balance will be paid after the WP(c). No. 25414 of 2014 -2-
installation. So at the time of transporting the goods the ownership of the goods not transferred”
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. P4 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/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.
Writ petition is disposed of.
Sd/-
P.R. RAMACHANDRA MENON, JUDGE.
Pn