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 which was detained by the 1st respondent issuing Ext.P3 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.P3 in the following terms:
“The vehicle with the goods intercepted and checked at Valayanchirangara. The goods under transport are not accompanied by any documents prescribed under Section 46(3) of the KVAT Act 2003. 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 suspected. Therefore in exercise of the powers conferred under sub-section (2) of the KVAT Act, 2003 read with KVAT Rules 2005 there under, the aforesaid goods/and vehicles are hereby detained/proposed to be detained. You are hereby afforded an opportunity to show cause, if any, against the proposed detention of W.P.C. No. 31368 of 2014 -2-
goods and vehicle within 24 hours on receipt of this notice together with supporting evidence, in original or to remit the security deposit, in lieu of detention, of Rs.84100/- (Rupees eighty four thousand & one hundred only) being double the amount of tax attempted to be evaded.”
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. P3 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 1st 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 1st respondent for further steps.
Writ petition is disposed of.
P.R. RAMACHANDRA MENON, JUDGE.
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