Release of detained goods pending tax adjudication conditioned on payment of the tax component, with remaining claims reserved

Detained goods under the Tamil Nadu Value Added Tax Act, 2006 were to be released pending adjudication, with release made conditional on payment of the one-time tax component to be determined by the respondent. The Court followed its earlier approach in similar matters and treated immediate release as appropriate while preserving the tax dispute for adjudication. The respondent's remaining claims were left open to be decided in the statutory proceedings.

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Issues: Whether the detained goods were liable to be released pending adjudication of the tax dispute, and on what conditions.

Analysis: The detention arose in the course of business under the Tamil Nadu Value Added Tax Act, 2006. The Court noted its earlier approach in similar matters directing release of goods on payment of the tax component, and found it appropriate to adopt the same course. The respondent's further claims were left to be decided in the adjudication proceedings.

Conclusion: The goods were directed to be released on payment of one time tax component to be determined by the respondent, while the remaining claims were kept open for adjudication.

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