Detention of consignment under KVAT upheld, but release allowed pending adjudication on bond without sureties

Detention of a consignment under the KVAT Act was upheld where, at the time of interception, the goods were not supported by the certificate of ownership and declaration required to accompany them, so no immediate irregularity in detention was shown. The Court nevertheless held that continued detention until completion of adjudication was unnecessary and permitted release of the goods pending adjudication on the petitioner furnishing a bond for the amount demanded, without sureties.

---

---

Issues: Whether the detention of the consignment under Section 47(2) of the KVAT Act was liable to be interfered with and whether the goods should be released pending adjudication.

Analysis: The consignment was found to be unsupported at the time of detention by the certificate of ownership and declaration required to accompany the goods. On that basis, no immediate irregularity in the detention was made out. At the same time, the Court considered that the goods need not remain under detention till the adjudication is completed.

Conclusion: The detention was not set aside, but the petitioner was granted release of the detained consignment pending adjudication on furnishing a bond for the amount demanded without sureties.

---