2013 (4) TMI 100 - HC - VAT and Sales Tax

Detention notice - demanding tax together with compounding fee goods were sent for trial - Held that - The petitioner is willing to pay the tax under protest in terms of Section 67(4) of the Tamil Nadu Value Added Tax Act, 2006 and the authorities are bound to release the same as the provision of law provides for release of goods on payment of tax. Regarding compounding of an offence - held that - The notice for composition of offence is in order and the petitioner is at liberty to pursue the same insofar as composition of offence is concerned. The authority is to pass appropriate final orders on composition notice based on the merits of the petitioner s case. The goods under detention shall be released on payment of tax demanded forthwith in terms of Section 67 of Tamil Nadu Value Added Tax Act, 2006. Writ Petition is disposed of

Summary

Issues:
Challenge to goods detention notice and tax demand, Composition of offence under Section 72 of Tamil Nadu Value Added Tax Act 2006.

Analysis:
The Writ Petition challenged a goods detention notice and a tax demand following the detention of goods sent for trial from Bangalore to Chennai. The petitioner argued that the documents submitted were not accepted by the respondent department, leading to the issuance of the detention notice and tax demand. The petitioner expressed willingness to pay the tax under protest as per Section 67(4) of the Tamil Nadu Value Added Tax Act, 2006, emphasizing that the authorities should release the goods upon payment of tax.

Regarding the composition of the offence, the judgment highlighted that Section 72 of the Tamil Nadu Value Added Tax Act 2006 outlines the procedure for composition, with Section 46 of the Tamil Nadu General Sales Tax Rules Act being analogous. The prescribed authority for composition of the offence is defined under Rule 53 of the Tamil Nadu General Sales Tax Rules, applicable under Section 88(3)(i) of the Tamil Nadu Value Added Tax Act, 2006. The judgment stated that the notice for composition of the offence was in order, allowing the petitioner to pursue it. The authority was directed to pass final orders on the composition notice based on the merits of the case. The judgment mandated the release of detained goods upon immediate payment of the tax demanded in accordance with Section 67 of the Tamil Nadu Value Added Tax Act, 2006.

The Writ Petition was disposed of, with no costs imposed, and the connected miscellaneous petition was closed as per the judgment delivered by the court.