Release of detained goods on tax payment under protest may proceed separately from composition proceedings.

Where goods are detained and the taxpayer is willing to pay the tax demanded under protest, the goods may be released forthwith on such payment under the Tamil Nadu Value Added Tax Act, 2006. The release of the detained goods is treated as distinct from any separate composition or compounding proceedings, which may continue independently in accordance with the statutory scheme. The taxpayer's right to contest the composition notice on merits is preserved, so the further proceedings are not concluded by the release of goods.

---

---

Issues: (i) Whether the detained goods were required to be released on payment of the tax demanded under protest under the Tamil Nadu Value Added Tax Act, 2006. (ii) Whether the composition or compounding notice could be proceeded with separately, leaving the petitioner free to contest it on merits.

Issue (i): Whether the detained goods were required to be released on payment of the tax demanded under protest under the Tamil Nadu Value Added Tax Act, 2006.

Analysis: The goods had been detained without quantification of tax, and the petitioner expressed willingness to pay the tax demanded under protest. The statutory scheme relied upon permitted release of goods on payment of the appropriate tax, and the Court followed the earlier approach adopted in a similar matter.

Conclusion: The goods were directed to be released forthwith upon payment of the tax as demanded, under protest.

Issue (ii): Whether the composition or compounding notice could be proceeded with separately, leaving the petitioner free to contest it on merits.

Analysis: The release of goods was treated as distinct from the further action on the composition notice. The respondent was permitted to proceed in accordance with the statutory provisions governing composition, while preserving the petitioner's right to dispute that action on merits and in accordance with law.

Conclusion: The composition notice could be proceeded with separately, subject to the petitioner's right to contest it on merits.

Final Conclusion: The writ petition was disposed of by granting release of the detained goods on payment of tax under protest and by allowing the statutory composition proceedings to continue independently.

Ratio Decidendi: Where goods are detained and the taxpayer is willing to pay the demanded tax under protest, the goods may be ordered to be released, while separate statutory proceedings concerning composition or compounding may continue in accordance with law.

---