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2023 (9) TMI 4 - KERALA HIGH COURTPenalty order - illegal detention of goods - demand of security deposit under Section 47(2) of the KVAT Act - HELD THAT:- From a perusal of clause (h) of Sub-section (1) of Section 67, it would be evident that if the vehicle had been asked to be stopped, but it has not stopped, it would constitute an offence for which twice the amount tax is to be levied as a penalty under Sub-section (2) of Section 67. The Explanation to Sub-section (2) of Section 67 provides the burden of proving that any person is not liable to the penalty under Sub-section (1) shall be on such person. This Court does not find any ground to interfere with the order insofar as it relates to the imposition of penalty under Subsection (2) of Section 67; however, concerning the demand for a security deposit of Rs. 1,38,352/-, thus no security could have been directed to be deposited by the petitioner inasmuch as the goods were not detained which were required to be released after seizure and therefore, the impugned order directing the petitioner to deposit a security deposit of Rs. 1,38,352/- is set aside. The petitioner has not deposited the penalty amount of Rs. 1,38,352/-; the Department is entitled to recover the said amount along with the applicable interest as arrears. Petition allowed in part.
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