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 2nd respondent 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:
“The above mentioned vehicle checked at CTCP B Manjeswaram. On physical verification and document verification of the goods, the following defects are noticed.
1. The consignee is a hotel at Munnar and not reg.under the KVAT Act.
2. The goods are Furniture and are in bulk in quantity.
3. The consignee submitted 2 different kinds of Form No.16( produced only photocopy of Form) and after the detailed verification it is found that two different W.P.C. No. 27895 of 2014 -2-
persons are signed in the Form No.16 .
4. Form No.16 is not clearly authenticated by a seal of consignee or a signature
5. Clear I.D proof of the consignee is not attached with the invoice. Consignees clear and complete address is not specified in the invoice.
From the above , a chance of resale of goods is suspected. Hence security deposit demanded on V/E ₹ 3,13,443/- including nominal freight and GP.”
3. It is stated that the goods (furniture) have been brought from outside the state for own use, to start the Hotel on the strength of Ext.P1 licence, satisfying CST at higher rate. Necessary 'Form 16' was also submitted; though genuineness of the transaction is doubted.
4. 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 demand amount. This however shall be without prejudice to the rights and liberties of the competent authority to proceed with the adjudication proceedings, which W.P.C. No. 27895 of 2014 -3-
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 concerned respondent for further steps.
Writ petition is disposed of.
P.R. RAMACHANDRA MENON, JUDGE.
sj