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2013 (4) TMI 585 - HC - VAT and Sales TaxDetention issued U/s 47(2) of the KVAT Act - Held that - The fact remains certificate of ownership and declaration did not accompany the consignment - Were produced before the Check Post Authorities after the detention Prima facie, I do not find any irregularity in the detention of the consignment. I do not think that pending adjudication, the goods should be kept under detention. In such circumstances, I direct that the adjudication in pursuance of Ext.P3 will be completed - Pending such adjudication, the consignment detained will be released on the petitioner, a registered dealer under the KVAT Act, furnishing a bond for the amount demanded, without sureties - The writ petition is disposed of as above.
Issues:
Challenge to detention notice under Section 47(2) of the KVAT Act for a consignment of Air Conditioners. Analysis: The petitioner challenged the detention notice issued under Section 47(2) of the KVAT Act for a consignment of Air Conditioners. The irregularity cited was that the consignee was not authorized for inter-state purchase and sale of Air Conditioners, and there was no evidence of exemption from tax payment. The petitioner claimed that the consignee had placed a purchase order (Ext.P1), and the goods were procured from their Madras Branch with invoices (Exts.P2 and P2(a)). It was argued that although the consignment lacked a certificate of ownership and declaration initially, documents (Exts.P4 and P5) were later produced showing full CST payment by the consignee. Despite these arguments, the court noted that Exts.P4 and P5 did not accompany the consignment at the time of detention. The court acknowledged the petitioner's justifications but emphasized the absence of Exts.P4 and P5 during the consignment's detention. Consequently, the court found no prima facie irregularity in the detention. However, considering the circumstances, the court ruled that pending adjudication, the consignment need not be detained. The court directed completion of adjudication as per Ext.P3 and ordered the release of the detained consignment to the petitioner, a registered dealer under the KVAT Act, upon furnishing a bond for the demanded amount without sureties. The writ petition was disposed of accordingly.
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