2015 (8) TMI 26 - HC - VAT and Sales Tax

Goods detained under TNVAT Act released by court despite transport issue; one-time tax payment required

M/s Kiran Distributors Versus The Commercial Tax Officer, The Assistant Commissioner (CT)

The court directed the release of goods detained under the TNVAT Act due to transportation in a different vehicle than specified, despite valid documents. ... Detention of goods - goods were transported in a different Goods Vehicle - Held that:- when the petitioner has come forward to effect one time tax that will be quantified by the first respondent, this Court finds no impediment to direct the first respondent to release the goods in question to the petitioner on payment of such one time tax. Accordingly, on receipt of a copy of this order, the first respondent is directed to quantify the amount of tax within a day and thereafter, on proper quantification of the one time tax by the first respondent, the petitioner will pay the said amount before the second respondent-assessing officer. On proof of such payment, the first respondent is further directed to release the goods forthwith to the petitioner. - Decided conditionally in favour of assessee. Issues:Challenge to goods detention notice under TNVAT Act for transporting goods in a different vehicle.Analysis:The writ petition was filed challenging the detention notice issued by the Commercial Tax Officer, alleging that the consignment was transported in a different vehicle than specified. The petitioner, a registered dealer, had requested stainless steel circles from a supplier, which were accompanied by the required documents. The goods were transported from Jodhpur to Chennai via Ahmedabad in a vehicle different from the one specified in the lorry receipt. The detention officer detained the goods citing the vehicle discrepancy, despite the documents being in order. The petitioner sought immediate release by offering to pay a one-time tax.In response, the Additional Government Pleader argued that the change of vehicles during transit was not properly reflected in the subsequent invoices or cross-checked at other check posts. However, the court found no hindrance in directing the release of goods upon payment of the one-time tax. The first respondent was instructed to quantify the tax amount promptly, and upon payment by the petitioner, the goods were to be released without delay. The writ petition was disposed of accordingly, with the directive for the release of goods upon payment of the specified tax amount.