Conditional release of detained goods granted where VAT liability depended on factual adjudication and prima facie documents supported the buyer.

Detention of the forklift could not be sustained at this stage because the petitioner's documents prima facie supported the claim that the sale was effected from Pune. The objection on the place of sale was therefore not accepted for the present, while the issue whether the registration certificate covered the machinery required factual enquiry. As adjudication under the Kerala Value Added Tax Act, 2003 was necessary, interim protection was warranted and the vehicle was directed to be released conditionally on furnishing bank guarantee, leaving liability and purchase authorisation to statutory adjudication.

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Issues: Whether the detention of the forklift could be sustained pending adjudication and whether interim release ought to be directed.

Analysis: The documents produced by the petitioner prima facie supported the stand that the sale was effected from Pune, and the objection based on the place of sale was not accepted for the present. The second objection, relating to whether the registration certificate covered the machinery, required factual enquiry. In that situation, adjudication under Section 47 of the Kerala Value Added Tax Act, 2003 was considered necessary, and interim protection was warranted pending such adjudication.

Conclusion: The detention was not finally upheld at this stage, and the forklift was directed to be released pending adjudication on furnishing bank guarantee for the security demanded.

Final Conclusion: The petitioner obtained interim release of the detained vehicle, but the dispute on liability and authorization to purchase the goods was left to statutory adjudication.

Ratio Decidendi: Where detention raises issues requiring factual adjudication under the VAT statute, the goods may be released conditionally pending adjudication if the materials disclose a prima facie case in favour of the detenu.

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