Goods detention release on payment of one-time tax, while the separate compounding fee challenge remained open.

Detained goods and vehicles were directed to be released on payment of the one-time tax demanded, where the petitioner accepted that payment for the limited purpose of securing release of the consignments. The Court treated this course as sufficient to resolve the immediate issue of detention, while keeping the separate question of compounding fee open for challenge in accordance with law. The release direction was therefore conditional on payment of the quantified tax, and the compounding fee dispute was not finally decided.

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Issues: Whether the detained goods and goods vehicles were liable to be released on payment of the one time tax demanded, and whether the petitioner could separately challenge the compounding fee.

Analysis: The goods had been detained at the check post in relation to disputed tax liability arising from the movement of goods from Telengana to Tamil Nadu. The petitioner expressed willingness to pay the one time tax demanded for the limited purpose of securing release of the consignments. The Court accepted that course to bring quietus to the dispute regarding release of the goods, while keeping the question of compounding fee distinct. The direction for release was thus linked to payment of the quantified one time tax, and the issue of compounding fee was left open to be pursued in accordance with law.

Conclusion: The detained goods and vehicles were directed to be released on payment of the one time tax, and the challenge to the compounding fee was left open.

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