2015 (4) TMI 899 - HC - VAT and Sales Tax

Detention of goods - Goods not accompanied with transit pass - Demand of tax - Imposition of compounding fees - Held that - Court in a series of writ petition, directed the goods to be released on payment of the tax component. - Writ Petition is disposed of with a direction to the respondent to release the goods on payment of the tax component - Decided conditionally in favour of assessee.

Summary

Issues:
Challenge to goods detention notice and release of goods based on failure to obtain Transit Pass under the Tamil Nadu Value Added Tax Act.

Analysis:
The petitioner, a Goods Transport Operator, entered into an agreement with a company for transporting goods. While transporting three cases of W.C.Chiller, the driver failed to obtain the required Transit Pass at the entry check post in Tamil Nadu. Consequently, the respondent detained the vehicle and goods, levying advance tax and a compounding fee. The petitioner sought release of the goods through a writ petition challenging the detention notice.

The High Court, after hearing both sides, noted the previous directions in similar cases to release goods upon payment of the tax component. Therefore, the court disposed of the writ petition by directing the respondent to release the goods upon payment of the tax amounting to Rs. 3,41,212. Any other claims by the respondent were to await adjudication, with no costs imposed on the petitioner. The judgment concluded by closing the connected Miscellaneous Petition.

In summary, the judgment addressed the specific issue of goods detention due to the absence of a Transit Pass under the Tamil Nadu Value Added Tax Act. It highlighted the court's consistent approach in similar cases, directing release upon payment of the tax component. The judgment maintained a fair balance by allowing other claims of the respondent to be adjudicated separately while ensuring the prompt release of goods upon fulfilling the tax obligation.