The 2nd petitioner who is a registered dealer under the Kerala Value Added Tax Act, who owns excavator and JCB and operating the same getting Ext.P2 registration under the Tamilnadu Value Added Tax Act was engaged by the 1st petitioner for doing job work of extracting granite in his quarry. For the purpose of using in the quarry the 1st petitioner had transported excavator in a lorry (on the strength of Exts.P3, P4 & P5), which was detained by the 1st respondent/The Commercial Tax Inspector, issuing Ext.P6 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.P6 in the following terms:
“The consignment under transport is an Excavator (2 year old). On verification of the documents accompanied the consignee is not a registered dealer under KVAT Act. The goods under transport is not accompanied by any documents prescribed under Section 46(3) of the KVAT Act. Hence it is presumed that the machinery is transporting either for executing works contract or W.P(C). No. 25905 of 2014 -2-
commercial purposes. Hence genuineness of transport is suspected and SD demanded for the value estimated.
Value Estimated - Rs.20,00,000/-”
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 petitioners forthwith, on satisfying 25% of the security deposit demanded vide Ext. P6 and on executing a 'simple bond' by both of them without sureties, for the balance amount. This however shall be without prejudice to the rights and liberties of the respondents/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 petitioners 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.
Sd/-
P.R. RAMACHANDRA MENON, JUDGE.
Pn