Release of detained goods on tax under protest affirmed, while challenge to the detention notice was declined.

Section 67(4) of the Tamil Nadu Value Added Tax Act, 2006 permits release of detained goods and vehicle on payment of tax or security, including payment made under protest. On that basis, release of the goods was directed forthwith on payment of tax under protest or voluntarily, while the request to quash the detention notice was declined. The composition-fee issue was left for the statutory authority to deal with under Section 72, including the discretion to seek appropriate security from an outside-State dealer by bank guarantee or bond.

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Issues: Whether the detained goods and vehicle were liable to be released on payment of tax under protest and whether the impugned detention notice deserved to be quashed.

Analysis: Section 67(4) of the Tamil Nadu Value Added Tax Act, 2006 permits release of goods on payment of tax or security, whether the payment is made voluntarily or under protest. The relief sought to quash the detention notice was therefore declined, but the petitioner's grievance was addressed by directing release of the goods forthwith on payment of tax either voluntarily or under protest. As regards composition fee, the matter was left to the statutory authority to proceed under Section 72 of the Tamil Nadu Value Added Tax Act, 2006 and to seek appropriate security from an outside State dealer by way of bank guarantee or bond at its discretion.

Conclusion: The writ petition was allowed in part by directing release of the goods on payment of tax under protest, while the prayer to quash the detention notice was declined and the composition-fee issue was left to be dealt with under the statute.

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