Detention of goods for Form JJ defects was upheld subject to tax payment and bank guarantee for compounding fee.

Goods accompanied by sales invoices and a transit pass under the Tamil Nadu Value Added Tax Act, 2006 were detained for alleged defects in Form JJ and transport particulars. The operative point was that the authority could verify the transaction and insist on tax payment or security where necessary, even though the defect cited was limited to the missing printed serial number and an error in transport details. Release of the goods was directed on payment of the tax demanded and furnishing a bank guarantee for the compounding fee, while the right to seek revision before the competent authority was preserved.

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Issues: Whether the detention of goods for alleged defects in Form JJ and transport particulars was liable to be interfered with, and whether release of the goods could be directed on compliance with conditions as to tax and security for compounding fee.

Analysis: The goods were accompanied by sales invoices and a transit pass under the Tamil Nadu Value Added Tax Act, 2006. The only defect pointed out was absence of a printed serial number in Form JJ and an error in transport details. The provisions governing transit pass and detention enabled the authority to verify the transaction and demand tax or security where necessary. The Court accepted the demand for tax payment and also accepted the requirement of securing the compounding fee by bank guarantee, while preserving the petitioner's right to seek revision before the competent authority.

Conclusion: The writ petition was disposed of with a direction to pay the tax demanded and furnish bank guarantee for the compounding fee, upon which the detained goods were to be released immediately.

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