Detained goods may be released on tax payment while the composition fee dispute remains open for challenge.

Goods detained under the Tamil Nadu Value Added Tax Act, 2006 could be released on payment of the tax demanded under the notice, following the statutory mechanism for release on tax payment. The stated approach allowed release without precluding the taxpayer from pursuing remedies on the composition fee. The right to contest that fee on merits was expressly left open, and further proceedings on that issue were permitted in accordance with law.

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Issues: Whether goods detained under the Tamil Nadu Value Added Tax Act, 2006 were liable to be released on payment of the tax demanded, and whether the petitioner could contest the composition fee in accordance with law.

Analysis: The petitioner sought release of the detained goods and expressed willingness to pay the tax demanded under protest. The statutory framework relied on for release was Section 67 of the Tamil Nadu Value Added Tax Act, 2006, under which goods could be released on payment of appropriate tax. The Court followed the approach adopted in earlier orders in similar matters and accepted that release could be directed on payment of tax as determined in the notice. As to the composition fee, the direction was limited to permitting further proceedings according to law, without foreclosing the petitioner's right to challenge it on merits.

Conclusion: The goods were ordered to be released forthwith on payment of the tax demanded, and the petitioner's right to contest the composition fee was left open in accordance with law.

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