2017 (7) TMI 1332 - HC - VAT and Sales Tax

Release of detained goods - payment of one time tax - compounded rate of tax or not - claim of appellant is that the goods are used as industrial inputs for Information Technologies Companies which are liable to be taxed at 5% under commodity code 2068 included in the first schedule Part B Serial No.68 of TN 2006 - HELD THAT - This contention raised by the petitioner in this Writ Petition as well as all the other contentions can be canvassed before the Revisional Authority and accordingly this Court directs the Revisional Authority to take into consideration those contentions and pass a speaking orders in the Revision Petition that will be filed by the petitioner. It is made clear that the payment of one time tax shall be subject to the order to be passed by the Revisional Authority in the Revision Petition. Petition disposed off.

Summary

Issues:
Challenge of goods detention notice, compounding notice, revision petition before Revisional Authority, tax rate on imported goods, technical writeup demonstration.

Analysis:
The petitioner challenged a goods detention notice issued by the respondent and took the goods upon remittance of one-time tax as per the release order. The petitioner plans to file a Revision Petition against the compounding notice, asserting that the imported goods are industrial inputs for Information Technologies Companies, taxable at 5% under commodity code 2068. The petitioner presented a Technical Writeup of the imported Switcher to support the claim. The court directed the Revisional Authority to consider all contentions, including the tax rate issue, and issue a detailed order in the Revision Petition. The payment of one-time tax is contingent on the Revisional Authority's decision.

The court disposed of the Writ Petition with the above directions, emphasizing that no costs are to be incurred.