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 P5), by the respondent/Commercial Tax Inspector issuing Ext.P11 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 respondent 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.P11 in the following terms:
“The goods with the vehicle were intercepted and checked at CTCP Walayar. On verification of the accompanying documents vis - Purchase order, the supply installation, testing commissioning and maintenance of UPS is done by M/s. Novateur Electrical & Digital Systems (P) Ltd. So they are liable to take registration under KVAT Act 2003. But they have failed to do so. ”
3. In response to the submission made by the learned WP(c). No. 32385 of 2014 2 Government Pleader that the petitioner's branch in Kerala is not separately registered, the learned counsel for the petitioner points out that the petitioner's branch in Kerala is also registered and is on the rolls of the Assistant Commissioner, Special Circle- III, Department of Commercial Taxes, Ernakulam with TIN 32070499233C. The original 'Certificate of Registration' is also produced by the petitioner before this Court and the same was handed over to the learned Government Pleader for perusal and return.
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 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.
WP(c). No. 32385 of 2014 3 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