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 (on the strength of Exts.P2 & P3), which was detained by the 1st respondent/Intelligence Inspector issuing Ext.P5 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 vehicle with goods intercepted at Cheranelloor while plying towards Marine Drive, Ernakulam. On verification of the documents accompanied, it is a sale from Kirloskarr Brothers Ltd., Sangli, to M/s.Vijaya Engineering Company, Trivandrum, Branch at HMT Colony, Kalamassery. So the deviation in the route could not be satisfactorily explained. Moreover, if it is for resale, no invoices are seen accompanied with WP(c). No.30512 of 2014 2 the consignment. The driver of the vehicle stated that the goods are to be unloaded at the work site of M/s.Tritvam flats owned by TATA .”
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 satisfying `1,00,000/- (Rupees One lakh only) and on executing a 'simple bond' without sureties for the balance amount. 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.
Sd/-
P.R. RAMACHANDRA MENON, JUDGE.
Pn