Release of detained goods on tax paid under protest upheld, while composition proceedings may continue in law.

Detained goods were directed to be released forthwith on payment of the tax demanded under protest under the Tamil Nadu Value Added Tax Act, 2006. The court accepted the request for release in line with an earlier similar order, while leaving the composition notice to be proceeded with in accordance with law. The petitioner was given liberty to contest the composition notice on merits, and the detention dispute was not allowed to prevent release once tax was paid under protest.

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Issues: Whether detained goods were liable to be released on payment of tax under protest under the Tamil Nadu Value Added Tax Act, 2006.

Analysis: The goods detention notice was challenged along with a demand for compounding fee. The petitioner sought release of the goods on payment of tax under protest. The authority also indicated that the claim for release would be considered under Section 67 of the Tamil Nadu Value Added Tax Act, 2006, and that further action regarding the composition notice could follow under Section 72 of the same Act. In the light of the earlier order of the Court in a similar matter, the request for release of goods on payment of tax was accepted.

Conclusion: The goods were directed to be released forthwith on payment of the tax demanded under protest, and the composition notice could be proceeded with in accordance with law, with liberty to contest it on merits.

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