The petitioner is aggrieved of the detention of goods brought by him (on the strength of Exts.P2 & P3), which was detained by the respondent, issuing Ext.P4 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. The learned Government Pleader appearing for the respondent submits on instructions and with reference to the materials on record that, the defects noted as per Ext.P4 are as follows:
“The goods under transport is Teak wood furniture, on the strength of item No.8 invoices referred to the two consignees viz,
1. P.P. Chacko, Ulloor, Trivandrum and
2. Adithya Furniture, Near Techno Park, Thiruvananthapuram (TIN:32010807734)
(i) In both the consignment, the value of teak wood furniture are far below than the prevailing market price.
(ii) Even though the consignor has issued item No.8 bills to the consignee, P.P. Chacko, Ulloor, Trivandrum, the prime identity (TIN), of the consignee is not indicated/displayed in the invoice raised.”
The goods had to be detained in tune with the relevant provisions of law, doubting evasion of tax, demanding security W.P.(C) No.27214 of 2014 2 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 executing a 'simple bond' without sureties. 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.
P.R. RAMACHANDRA MENON, JUDGE sp