2013 (5) TMI 286 - HC - VAT and Sales Tax

Transit pass default - Transported the goods from Chennai to Puducherry without printed serial number in Form JJ - appeal to release the goods detained - Held that - From a reading of the provision of Section 67(3)(b) & 70 (1)(a) of the TNVAT Act it is clear that the owner or other person incharge of such goods should obtain the transit pass from the authorities. In this case, the petitioner, as transporter, has already obtained transit pass from the authorities, but, the only defect is that there is no printed serial number in Form JJ bearing No.004120 dated 05.02.2013 and also that in Column No.5, Transport details are wrongly mentioned. The petitioner shall pay a sum of ₹ 2,52,485/- being the amount of tax demanded by the respondent, within a period of two weeks from the date of receipt of a copy of this order. As regards the compounding fee, without prejudice to the petitioner s right to file a revision before the competent authority, the petitioner shall furnish Bank guarantee for a sum of ₹ 7,57,455/- being the compounding fee demanded by the respondent on compliance of which the respondent shall release the goods detained immediately.

Summary

Issues:
1. Detention notice quashing and goods release direction sought.
2. Alleged technical mistake in Form JJ serial number.
3. Requirement of transit pass under TNVAT Act.
4. Dispute over tax liability and compounding fee payment.

Analysis:
1. The petitioner, a Private Limited Company, sought to quash a detention notice and secure the release of goods detained due to a technical issue with Form JJ. The respondent alleged a lack of printed serial number in Form JJ as the reason for detention, despite proper tax invoices accompanying the goods. The petitioner contended that the absence of a serial number was a minor technical error that should not result in detention.

2. The respondent argued that a transit pass in Form JJ with a printed serial number is mandatory for transporting goods under the TNVAT Act. The petitioner maintained that the goods were moved with proper tax invoices as required by law and that there was no explicit requirement to file Form JJ for transportation, emphasizing compliance with Sections 69 and 70 of the TNVAT Act.

3. Section 70(1)(a) of the TNVAT Act mandates obtaining a transit pass for goods vehicles carrying specified goods. The respondent insisted on detaining the goods due to the absence of a printed serial number in Form JJ, despite the petitioner's assertion that the necessary documents were submitted for verification.

4. The court directed the petitioner to pay the demanded tax amount within two weeks and furnish a bank guarantee for the compounding fee to secure the Department's interests. The petitioner agreed to comply with the conditions set by the court, ensuring the release of the detained goods upon fulfilling the specified requirements, without prejudice to the right to file a revision before the competent authority.