The petitioner, a registered dealer under the Kerala Value Added Tax Act, 2003, is engaged in the trade of pressure pumps and its accessories. In the course of business operation, the petitioner sent a consignment covered by Ext. P1 invoice. While the goods were being carried in the vehicle bearing No. KL 57 F 8672, they were intercepted by the first respondent issuing Ext. P4 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 absolutely no offence has been committed by the petitioner and there was no attempt to evade tax. It is stated that the objections raised by the respondents are of technical in nature. This is sought to be rebutted by the learned Government Pleader. The reasons for detention, as shown in Ext. P2 notice, are in the following terms :
W.P.(C) No. 33892 of 2014 : 2 :
“The vehicle with goods are intercepted at Paramani Road, Calicut. On verification of the documents produced, the following defects are notice. As per the transaction slip declared at the boarder checkpost, it is declared that the consignment is transported from Chennai to Vortex Engineering Company, Kollam and as per the invoice accompanied, the consignment is intended to Hilite Projects Pvt. Ltd., Calicut bearing TN 32111504752. But there is no subsequent Sale Bill/Delivery Note in form 15 from Vortex Engg. Company, Kollam to Hilite Projects Pvt. Ltd., Calicut is accompanied with the consignment.”
4. Considering the facts and circumstances, this Court finds that the actual particulars can be unearthed only 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. P4 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, W.P.(C) No. 33892 of 2014 : 3 :
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.
Sd/-
P. R. RAMACHANDRA MENON, (JUDGE) kmd