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 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 Government Pleader appearing for the respondent 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.P7 in the following terms:
“The vehicle with the goods was intercepted at CTCP Valayar. On verification of the consignment and accompanying documents the following irregularities noticed.
1. The value shown in the 8F declaration and in the form KK are different. In the Form KK value shown as Rs.7,09,116. But in Form 8F Rs.1,103,636/-, Rs.10,28,219/-.
2. The value shown in the Bill of Entry (BE 6653647) is Rs.17957.07 USD (Rs.10,99,871) plus Customs Duty Rs.141543/-. Total is Rs.12,41,414/- and the value shown in Bill of Entry No.662018 is 17121.13 (Rs.10,44,389) plus Customs Duty Rs.1,31,871/- Total W.P.C. No.30253 of 2014 -2-
Rs.11,76,260/- so the value shown in form KK has no relation with the actual value of the commodity.
3. The original copy of the Bill of Entry is not attached with the consignment. So multiple transactions by using original Bill of Entry is suspected.”
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 25% of the security deposit demanded vide Ext. P7 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.
P.R. RAMACHANDRA MENON, JUDGE.
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