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2016 (4) TMI 135 - HC - VAT and Sales TaxSeeking direction to release of detained goods - Transit pass manually generated and other related documents not available for verification - Held that - the transit pass manually generated was produced at the time of check and the transaction is inter-state in nature. When such being the case, the respondent cannot demand tax as if the transaction is meant for local sale. For not affixing the signature of the Consignor or Consignee, only a sum of ₹ 2,000/- (Rupees Two Thousand only) can be imposed as fine. Therefore, it is inclined to order release of the detained goods on payment of ₹ 2,000/- (Rupees Two Thousand only) by the petitioner. - Petition disposed of
Issues:
Challenge to goods detention notice and seeking release of detained goods. Analysis: The petitioner, a trader of vegetable oils, challenged a goods detention notice issued by the respondent regarding Soya Oil purchased from a company in Maharashtra and sold to another company in Puducherry. The goods were detained due to alleged lack of proper documentation during transportation. The petitioner argued that the transaction was inter-state and not subject to certain provisions of the TNVAT Act. The respondent contended that the goods were transported without valid documents, justifying the detention. The court noted that the goods were transported with a manually generated transit pass and the transaction was inter-state. It was observed that demanding tax as if the transaction was for local sale was not appropriate. The court found that a fine of Rs. 2,000 could be imposed for not affixing the signature of the Consignor or Consignee. After considering the arguments and evidence, the court ordered the release of the detained goods upon payment of the fine of Rs. 2,000 by the petitioner. The court also allowed the petitioner to challenge the compounding fee before the competent authority if desired. The writ petition was disposed of with no costs, and the connected miscellaneous petitions were closed.
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