2016 (5) TMI 121 - HC - VAT and Sales Tax

Seeking direction for the release of goods detained without insisting on payment of any tax or compounding fee - Goods detained for the technical reason that the petitioner has not generated and submitted the E-Transit pass - Violation of Section 72(1)(a) of the TNVAT Act - Held that - as the petitioner has got right of revision before the appropriate authority without prejudice to their contention in the said revision the petitioner is directed to pay the one time tax of 1, 15, 010/- to the respondent and get the goods consignment released. On payment of the one time tax the respondent is directed to release the goods consignment detained under the Goods Detention Notice dated 25.01.2016. It is made clear that the petitioner is making the one time tax payment of 1, 15, 010/- without prejudice to their contentions to be raised in the revision. - Petition disposed of

Summary

Issues:
Detention of goods for not submitting E-Transit pass, violation of Section 72(1)(a) of TNVAT Act, payment of tax and compounding fee, petitioner's right of revision before appropriate authority.

Detention of Goods:
The petitioner filed a Writ Petition challenging the detention of goods due to not submitting the E-Transit pass. The petitioner argued that the goods had proper accompanying documents like Excise Invoice and Lorry Receipt. The goods vehicle had entered Tamil Nadu through a check post where entries were made, but the officer refused to issue a transit pass, insisting on electronic generation only.

Violation of TNVAT Act:
The respondent contended that there was a violation of Section 72(1)(a) of the TNVAT Act, necessitating the payment of tax and compounding fee. The petitioner argued that this section applies only in cases of attempted evasion or evasion of tax under the Act.

Payment of Tax and Release of Goods:
The Additional Government Pleader suggested the petitioner pay a one-time tax amount to release the goods, with the option to raise contentions in a revision before the appropriate authority. The court directed the petitioner to pay the one-time tax of Rs. 1,15,010 to the respondent, ensuring the release of the detained goods. The petitioner's right to raise contentions in the revision was preserved.

Judgment and Disposal:
Considering the submissions from both sides, the court disposed of the Writ Petition, directing the petitioner to pay the specified tax amount for the release of goods. The petitioner was allowed to pursue their contentions in the revision process. The judgment clarified that the tax payment was made without prejudice to the petitioner's future arguments. No costs were awarded, and connected miscellaneous petitions were closed as a consequence of the judgment.