The machinery purchased by the petitioner from outside the State satisfying CST at lesser rate was intercepted on 11.02.2014, issuing Ext. P2 notice under Section 47 (2) of the KVAT Act, doubting evasion of tax and demanding security deposit to the extent as specified, which made the petitioner to approach this Court for immediate intervention.
2. The learned counsel for the petitioner submits that the machinery purchased by the petitioner as per Ext. P5 invoice dated 23.09.2014 (produced along with I.A. No. 14101 of 2014) has already been included in the Certificate of Registration. This being the position, the petitioner is eligible to get the benefit of Section 8 (3) (b) of the Central Sales Tax Act, as the machinery is intended to be used for industry/business of the petitioner.
3. Heard the learned Government Pleader as well, who submits that interception, admittedly was made on 11.10.2014, but the machinery was got included in the Registration Certificate only subsequently, as discernible from Ext. P1 dated 13.10.2014.
W.P.(C) No. 27093 of 2014 : 2 :
4. Considering the facts and circumstances, whether there was any actual intent to defraud the revenue, is a matter which is to be ascertained in the course of adjudication proceedings. But for that reason, the goods need not be detained any further and the same shall be released to the petitioner, on condition that, the petitioner satisfies 25 % of security demanded vide Ext. P2 notice and furnishes a 'Simple Bond' without sureties for the balance amount. This will be without prejudice to the rights and liberties of the respondents to pursue 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 this judgment along with copy of the writ petition before the concerned respondent for further steps.
The Writ Petition is disposed of.
kmd Sd/-
P. R. RAMACHANDRA MENON, (JUDGE)