Interim release of detained goods and vehicle ordered pending tax adjudication, subject to personal bond and security conditions.

Goods and a vehicle detained under the Kerala Value Added Tax Act were directed to be released pending adjudication on execution of a personal bond for the security demanded in the detention notice. The Court followed an earlier similar detention ruling and left the departmental authorities free to complete the merits of the assessment proceedings. It also directed that the adjudication be concluded expeditiously. The ruling reflects interim release in detention matters where adjudication remains open, subject to security conditions.

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Issues: Whether goods and the vehicle detained under Section 47(2) of the Kerala Value Added Tax Act, 2003 were liable to be released pending adjudication, and whether the adjudication proceedings should be directed to be completed expeditiously.

Analysis: The detention notice was challenged on the ground that the petitioner was not a dealer and was engaged only in diagnostic services. The Court noted that an earlier decision on a similar detention had already directed release of the goods and vehicle on execution of a personal bond, while leaving the departmental authorities free to complete adjudication. Following the same approach, the Court directed interim release of the goods and vehicle on execution of a personal bond for the security demanded in the notice, and also directed expeditious completion of the adjudication proceedings.

Conclusion: The goods and vehicle were ordered to be released pending adjudication, subject to execution of a personal bond, and the adjudication was to be completed expeditiously.

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