2013 (2) TMI 360 - HC - VAT and Sales Tax

Detention of goods - appellant seeking release of the goods detained - TNVAT Act, 2006 - Held that - Section 67(4) of the TNVAT Act, 2006 provides for release of goods on payment of tax or the security either voluntarily or under protest. In such view of the matter, the larger relief sought for to quash the impugned goods and vehicle detention notice is declined and a direction is issued to the respondents to release the goods forthwith if the tax is paid either voluntarily or under protest. Composition fee - Held that - The authorities will proceed in accordance with the provisions of Section 72 of the TNVAT Act, 2006 for which the authority is entitled to seek appropriate security from the petitioner, an outside state dealer by way of bank guarantee or bond at the discretion of the authority. The petitioner is entitled to file a revision under Section 54 of the TNVAT ACT, 2006, if required.

Summary

Issues:
Petition for Writ of Certiorarified Mandamus to quash impugned order and release goods and vehicle from liabilities under TNVAT Act, 2006.

Analysis:
The petitioner filed a Writ Petition seeking a Writ of Certiorarified Mandamus to challenge the order dated 18.1.2013 passed by the first respondent, requesting the release of goods and a vehicle from liabilities. The Government Advocate (Tax) appeared for the respondents, and the petition was taken up for final disposal with consent. Initially, the petitioner sought to quash the goods and vehicle detention notice but later agreed that the grievance could be resolved by releasing the goods on payment of tax under protest as per Section 67(4) of the TNVAT Act, 2006.

The Court noted that Section 67(4) of the TNVAT Act, 2006 allows for the release of goods upon payment of tax or security voluntarily or under protest. Consequently, the larger relief sought to quash the detention notice was denied, and the respondents were directed to release the goods immediately upon payment of tax either voluntarily or under protest. This decision was based on the provisions of the TNVAT Act, 2006, providing a legal basis for the release of goods under the circumstances presented in the case.

Regarding the composition fee, it was determined that the authorities would act in accordance with Section 72 of the TNVAT Act, 2006. The authority was granted the discretion to request appropriate security from the petitioner, an outside state dealer, in the form of a bank guarantee or bond. Additionally, the petitioner was informed of the right to file a revision under Section 54 of the TNVAT Act, 2006, if deemed necessary. The judgment clarified the procedure for dealing with the composition fee and the options available to the petitioner in case of further disputes or revisions.

In conclusion, the Writ Petition was ordered as per the above decisions, with no costs imposed. The connected miscellaneous petition was subsequently closed, bringing the legal proceedings to a resolution based on the interpretation and application of the relevant provisions of the TNVAT Act, 2006.