Transit pass compliance under Tamil Nadu VAT law justified detention relief only on tax payment and bank guarantee security.

A transporter carrying Sixth Schedule goods through Tamil Nadu was treated as the person in charge of the goods vehicle and was required to obtain a transit pass from the first check post under the Tamil Nadu Value Added Tax Act, 2006. As the goods were detained for want of a transit pass, the Court applied the detention power under section 67(3)(b) and accepted release on compliance with the tax demand and security for the compounding fee. The detention was therefore not interfered with unconditionally; release was ordered only on payment of the tax and furnishing of a bank guarantee for the compounding fee, with liberty to pursue revision.

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Issues: Whether the goods detention could be interfered with and release ordered on compliance with tax payment and security for the compounding fee under the Tamil Nadu Value Added Tax Act, 2006.

Analysis: Section 70(1)(a) of the Tamil Nadu Value Added Tax Act, 2006 requires the person in charge of a goods vehicle carrying Sixth Schedule goods through the State to obtain a transit pass from the first check post. The petitioner, a transporter, was treated as the person in charge, and the goods were detained for want of transit pass. The Court also relied on Section 67(3)(b) of the Tamil Nadu Value Added Tax Act, 2006, which permits detention and requires payment of tax or furnishing of adequate security. Considering the petitioner's status as transporter and the Department's need to secure the compounding fee, the Court accepted the condition of tax payment coupled with bank guarantee for the compounding fee.

Conclusion: The detention was not quashed unconditionally; release of the goods was directed on payment of the tax demanded and furnishing of bank guarantee for the compounding fee, with liberty to pursue revision.

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