Release of detained goods on tax payment upheld, while the compounding dispute was left to be pursued separately.

Goods detained for movement without the prescribed transport documents were considered releasable on payment of the tax demanded under the Tamil Nadu Value Added Tax Act, 2006. The Court accepted the revenue's position that release could be secured if the petitioner opted to pay the specified tax amount. It also held that the objection to compounding of the alleged offence was a separate matter to be worked out independently in accordance with law, and not in these proceedings. Relief was therefore granted partly in favour of the assessee, limited to release of the detained goods.

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Issues: Whether goods detained for movement without the prescribed documents were liable to be released on payment of the tax amount, and whether the demand for compounding could be assailed in these proceedings.

Analysis: The goods were intercepted on the basis that the vehicle did not carry the required transport documents and that the movement and unloading were contrary to the requirements of Section 69 of the Tamil Nadu Value Added Tax Act, 2006. The Court accepted the revenue's submission that release could follow if the petitioner opted to pay the one-time tax demanded. It also noted that the dispute regarding compounding of the offence was a matter for the petitioner to work out separately in accordance with law.

Conclusion: The petitioner was entitled to release of the goods on payment of the specified tax amount, while the challenge relating to compounding was left to be pursued separately. The relief was thus granted in part in favour of the assessee.

Ratio Decidendi: Where detained goods are sought to be released, the authority may direct release on payment of the tax demanded, while issues concerning compounding of the alleged offence can be pursued independently in accordance with law.

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