9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2013 (5) TMI 114 - HC - VAT and Sales TaxGoods detention notice - Release of the goods - Tamil Nadu Value Added Tax Act, 2006 - plastic granuels transported was not supported by transit pass - Held that - petitioner shall pay the sum of ₹ 1,19,260/-, being the amount of tax demanded by the respondent, within a period of one week from the date of receipt of a copy of this order. As regards the compounding fee, without prejudice to petitioner s right to file a revision before the competent authority, the petitioner shall furnish bank guarantee for the sum of ₹ 2,38,720/- being the compounding fee demanded by the respondent.As and when the petitioner complies with the aforesaid conditions, the respondent shall release the goods detained immediately.
Issues: Challenge to goods detention notice proceedings under Tamil Nadu Value Added Tax Act, 2006
Analysis: 1. The petitioner challenged the detention of goods in a writ petition, claiming to be engaged in transporting goods owned by M/s. Indian Oil Corporation Ltd. to various states in India for M/s. Supreme Industries Ltd. The goods, plastic granules worth Rs. 20,35,086, were detained as they lacked a required transit pass at a check post, leading to the petition against the detention proceedings. 2. The petitioner argued that they followed proper procedures, maintaining a movement register, and were willing to pay the tax liability as demanded in the detention notice. On the other hand, the government advocate contended that the petitioner, as a transporter, needed to secure a compounding fee in addition to the tax liability, highlighting the department's difficulty in collecting the fee if not secured. 3. The court observed that as per Section 70(1)(a) of the TNVAT Act, the owner or person in charge of the goods vehicle should obtain a transit pass for goods mentioned in the Sixth Schedule when passing through the state. The petitioner, claiming to be in charge, sought the release of goods on payment of tax, which was opposed by the government advocate who emphasized the necessity of securing the compounding fee. 4. The judgment directed the petitioner to pay the demanded tax amount of Rs. 1,19,260 within a week and furnish a bank guarantee for the compounding fee of Rs. 2,38,720. Upon compliance with these conditions, the detained goods were to be released by the respondent, resolving the issue raised in the writ petition under the TNVAT Act, 2006.
|
