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2013 (4) TMI 244 - HC - VAT and Sales TaxDetention of goods and vehicle - TNVAT Act, 2006 - notice for composition has been issued demanding both tax as well as compounding fee - Held that - The larger relief sought for to quash the impugned notice for composition is declined and a direction is issued to the respondent to release to goods forthwith if the tax is paid voluntarily or under protest. Insofar as the composition fee is concerned, the authorities will proceed in accordance with the provisions of Section 72 of the TNVAT Act, 2006 for concluding the composition proceedings separately, after following the procedure prescribed. The petitioner is entitled to file a revision under Section 54 of the TNVAT ACT, 2006, if so advised.
Issues:
Detention of goods and vehicle under goods detention GD No.83/12-13 dated 30.11.2012. Challenge to the notice dated 2.12.2012 demanding tax and compounding fee. Interpretation of Section 67(4) of the TNVAT Act, 2006 regarding release of goods. Treatment of composition fee under Section 72 of the TNVAT Act, 2006. Availability of revision under Section 54 of the TNVAT Act, 2006. Analysis: The Writ Petition was filed seeking a Writ of Certiorarified Mandamus to challenge the detention of goods and a vehicle under goods detention GD No.83/12-13 dated 30.11.2012. The petitioner requested the quashing of the notice dated 2.12.2012 that demanded both tax and a compounding fee. The Government Advocate (Tax) for the respondent agreed to the final disposal of the writ petition by consent. Regarding the demand for tax and compounding fee, it was highlighted that Section 67(4) of the TNVAT Act, 2006 allows for the release of goods upon payment of tax or security, whether voluntarily or under protest. The petitioner initially sought to quash the notice but later agreed that the goods could be released upon payment of tax under protest in accordance with the Act. The judgment declined the larger relief sought to quash the notice dated 2.12.2012. Instead, a direction was issued to the respondent to release the goods immediately upon payment of tax, whether voluntarily or under protest. However, concerning the composition fee, it was clarified that the authorities should follow the procedures outlined in Section 72 of the TNVAT Act, 2006. The composition fee should not be a pre-condition for releasing the goods, and the authorities can proceed with the composition proceedings separately, allowing the petitioner to file a revision under Section 54 of the TNVAT Act, 2006 if needed. Ultimately, the Writ Petition was granted in part, with the relief provided for the release of goods upon payment of tax, and no costs were awarded in the judgment.
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