2017 (2) TMI 290 - HC - VAT and Sales Tax

Detention of goods - goods were not accompanied by an inward way bill - in order to avoid further delay, the petitioner is willing to pay the one time tax - The petitioner, hereafter, will have liberty to challenge not only tax imposed, but also the compounding fee levied - petition disposed off.

Summary

Issues:
Challenge to order directing payment of one time tax and compounding fee for detained goods without an inward way bill.

Analysis:
The petitioner challenged an order dated 30.12.2016 directing the payment of one time tax and compounding fee for goods detained at a checkpost. The goods, transported from Daman to Chennai, were detained at the Ranipet Checkpost on the same day for not being accompanied by an inward way bill. The petitioner, despite producing the inward way bill after the detention order, faced delays in the release of the goods. The petitioner expressed willingness to pay the one time tax to expedite the release of the goods, reserving the right to challenge the tax and compounding fee imposed. The respondent, represented by the Additional Government Pleader, agreed to release the goods upon payment of the one time tax.

The High Court directed the respondent to release the goods and the vehicle upon payment of the one time tax amounting to ?1,10,969. The court clarified that the payment of tax would not prejudice the petitioner's rights to challenge the tax and compounding fee through appropriate legal remedies. The petitioner was granted liberty to challenge both the tax and compounding fee in accordance with the law. The writ petition was disposed of based on the direction for the release of goods, with no order as to costs.