Release of detained goods allowed on payment of quantified tax, while the compounding fee issue was left open.

Detained goods were directed to be released once the tax payable was quantified and paid, as the tax had not yet been assessed. For the limited purpose of securing release, the respondent was required to quantify the tax and intimate the amount within one week, and the goods were to be released forthwith on payment. The question of compounding fee was expressly left open for adjudication in accordance with law.

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Issues: Whether the detained goods were liable to be released on quantification and payment of tax, while leaving the question of compounding fee open.

Analysis: The goods had been detained since 16.09.2015 and the tax payable had not yet been quantified. For the limited purpose of securing release of the goods, the respondent was directed to quantify the tax payable and intimate the amount to the petitioner within one week. On payment of the quantified tax, the detained goods were to be released forthwith. The question of compounding fee was not finally decided and was left open for adjudication in accordance with law.

Conclusion: The petitioner was entitled to release of the detained goods upon payment of the quantified tax, and the issue of compounding fee remained open.

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