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, P3, P4 & P7), which was detained by the 4th respondent/The Intelligence Officer, issuing Ext.P8 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.P8 in the following terms:
“The vehicle with the goods was intercepted at Walayar CTCP, on verification of the consignment and accompanying documents the following irregularities noticed.
1) The consignor is not authorized to effect interstate sales of mining machinery.
2) The consignor is a new firm registered under KVAT Act 2003 only on 1.4.2014. The commodity permitted to deal is only crushing machines.
3) No service documents or warranty paper or purchase documents attached with the consignment to establish the age and depreciation of the capital goods (consignment).
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4) The value shown in the invoice is too low when compared to the market price of the consignment.
5) The details regarding the original owner and their purchase history is required to calculate the original price of the consignment which is not make available”
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. P8 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