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.P7 notice under Section 47(2) of the KVAT Act doubting evasion of tax and demanding security deposit as specified therein.
2. The learned counsel for the petitioner points out that, there is absolutely no rhyme or reason for detaining the goods which was sent from Kochi to outside the State after getting necessary clearance from the Customs authorities and the same was accompanied by all the requisite documents as envisaged under Section 46(3) of the KVAT Act. Reference is made to Ext.P2 invoice and Ext.P3 Bill of Entry. The learned counsel submits that it was only an interstate stock transfer and no tax liability is there in respect of the transaction. The defects are rather technical in nature and only after raising the invoice could W.P.C. No. 26520 of 2014 -2-
the petitioner have approached the Customs authorities for releasing the goods from Bonded Warehouse.
3. Heard the learned Government Pleader as well.
4. After hearing both the sides and considering the materials on record, this Court finds that the goods could be released subject to satisfaction of the condition envisaged under the 'second proviso' to Section 47(2) of the KVAT Act. This will not bar the way of the respondents in pursuing adjudication proceedings, which shall be finalized at the earliest, 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. The writ petition is disposed of .
P.R. RAMACHANDRA MENON, JUDGE.
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