2016 (1) TMI 1229 - HC - VAT and Sales Tax

Release of detained goods - transport of two consignments of DVD players from Moolakadai to Mount Road on 12.12.2015 in a mini lorry - detained on the ground that the goods transported without valid documents - Held that - this Court is inclined to order release of the detained goods in question on payment of tax to the tune of ₹ 1,24,000/- by the petitioner - petition allowed - decided partly in favor of petitioner.

Summary

Issues: Challenge to goods detention notice and seeking release of detained goods.

Challenge to Goods Detention Notice:
The petitioner, engaged in transport services, challenged a goods detention notice issued by the respondent regarding the transportation of DVD players without valid documents. The petitioner contended that the detention was arbitrary and illegal as the goods were transported with valid documents. On the other hand, the respondent argued that the goods were transported without valid documents, justifying the detention and issuance of the notice.

Detailed Analysis:
The petitioner transported two consignments of DVD players from one location to another in a mini lorry, which was intercepted by the respondent resulting in the detention of the goods. The petitioner claimed that the transportation was done with valid documents, while the respondent alleged the lack of valid documents for the consignments. The court considered both arguments and examined the materials presented.

Decision and Order for Release:
After hearing both parties and reviewing the case, the court decided to order the release of the detained goods upon the petitioner paying a tax amounting to Rs. 1,24,000. The court disposed of the writ petition by directing the petitioner to make the specified tax payment to the respondent. Upon payment of the tax, the detained goods were to be released immediately. The court also mentioned that the petitioner could challenge any compounding fee before the competent authority as per legal procedures.

Conclusion:
The judgment resolved the challenge to the goods detention notice by ordering the release of goods upon payment of the specified tax amount. It clarified the legal position regarding the transportation of goods with valid documents and highlighted the option for the petitioner to contest any additional fees through the appropriate legal channels.