Transit pass detention: consignments released on one-time payment, while tax and compounding disputes remained open.

Detained consignments for absence of a transit pass in Form LL under the Tamil Nadu Value Added Tax Act, 2006 were directed to be released after the petitioner agreed to pay a one-time amount, without prejudice to its challenge on the underlying tax dispute. The Court accepted the limited proposal to avoid further delay and ordered immediate release of the goods, while preserving the petitioner's right to pursue the tax and compounding issues before the competent authority.

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Issues: Whether the detained consignments should be released on payment of a one-time tax amount despite the absence of a transit pass for transport of the goods.

Analysis: The consignments were detained for want of a transit pass in Form LL under Section 70 of the Tamil Nadu Value Added Tax Act, 2006. The petitioner asserted that the goods were imported on high seas and were meant for its Special Economic Zone unit, and expressed willingness to pay the amount demanded for securing release of the goods, without prejudice to its rights regarding the underlying tax dispute. To avoid further delay and to give a quietus to the matter for the limited purpose of release, the Court accepted the proposal and directed payment of a one-time amount.

Conclusion: The consignments were ordered to be released forthwith on payment of Rs. 5,70,000/-, while the petitioner was left at liberty to agitate the tax and compounding issues before the competent authority.

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