2017 (2) TMI 466 - HC - VAT and Sales Tax

Detention of goods - detention on account of the variation in the weight - one time tax - Held that - variation in weight occurred, inadvertently, and that, if regard had been had to the other documents, this discrepancy would have come to light - in order to expedite the release of detained goods, the petitioner, is willing to pay one time tax - respondent are directed to release the detained goods upon payment of one time tax - petition allowed - decided partly in favor of petitioner.

Summary

Issues: Challenge to goods detention notice and compounding notice due to variation in weight in detained goods.

In this judgment, the petitioner challenged a goods detention notice and a compounding notice issued due to a discrepancy in the weight of the detained goods. The weight indicated in the invoice and Form JJ was 33,050 Kgs, while the weight in the e-transit pass (Form LL) was 23,050 Kgs, leading to the detention of goods. The petitioner argued that the transaction was an inter-state sale with CST already paid, and the weight discrepancy was inadvertent. The petitioner expressed willingness to pay a one-time tax for the release of goods, without prejudice to their rights. The respondent agreed to release the goods upon payment of the one-time tax.

The court, after hearing both parties, directed the respondent to release the detained goods upon payment of the one-time tax. The court clarified that this payment would not prevent the petitioner from challenging the tax imposition or the compounding fee in accordance with the law. The writ petition was disposed of accordingly, with the connected pending application closed, and no order as to costs was given.