2017 (2) TMI 747 - HC - VAT and Sales Tax

Detention of goods - non-production of E-transit pass - Form LL, in which, the application for issuance of transit pass is made, was downloaded from the website, though after the goods had been detained, and was, accordingly, furnished to the respondents - Held that - the subject goods can be released to the petitioner, on payment of one time tax equivalent to ₹ 19,800/- - petition allowed - decided partly in favor of petitioner.

Summary

Issues: Challenge to order demanding one-time tax and compounding fee for intercepted consignment without E-transit pass.

Analysis:
1. The petitioner challenged an order demanding one-time tax and compounding fee for an intercepted consignment of Iron and Steel without an E-transit pass while being transferred from Tamil Nadu to Andhra Pradesh.

2. The petitioner contended that the application for the transit pass was made after the goods were detained, and despite furnishing Form LL, the goods were not released.

3. The petitioner expressed willingness to pay the one-time tax to expedite the release of the goods, without prejudice to its rights and contentions.

4. The Additional Government Pleader for the respondents confirmed that upon payment of the one-time tax, the subject goods would be released to the petitioner.

5. The court, after hearing both parties, directed the release of the goods to the petitioner upon payment of the one-time tax of ?19,800, with a clarification that this payment does not affect the petitioner's rights and contentions.

6. The court granted the petitioner the liberty to challenge not only the tax imposition but also the compounding fee of ?39,600 by following the appropriate legal remedy.

7. The writ petition was disposed of based on the above directions, with no order as to costs, and the pending application was closed.