Petitioner to Pay Tax for Compounding Notice, Release of Goods Ordered

The court directed the petitioner to remit a one-time tax of Rs. 10,61,845 as quantified in the compounding notice. After payment of the tax, the petitioner could avail other remedies under the Act. Upon remittance of the tax, the respondent was ordered to release the goods immediately. The writ petition was disposed of without any costs, and the connected miscellaneous petition was also closed.

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Issues:
Challenge to goods detention notice and compounding notice.

Analysis:
The petitioner challenged the goods detention notice and compounding notice issued by the respondent. The respondent detained the consignment due to three defects: the petitioner not being a registered dealer in West Bengal, the import and export details being questionable, and the godown not being registered under the TNVAT Act. The petitioner argued that the goods were covered by proper records and requested their release. However, the respondent did not release the goods and issued the compounding notice. The petitioner explained that the goods were temporarily stored in a private godown for export to Malaysia through M/s.Sre Ranga Logistics. The court noted that these were factual issues to be established before the appropriate authority and not within the purview of the writ petition.

The court directed the petitioner to remit a one-time tax of Rs. 10,61,845 as quantified in the compounding notice. After payment of the tax, the petitioner could avail other remedies under the Act. Upon remittance of the tax, the respondent was ordered to release the goods immediately. The writ petition was disposed of without any costs, and the connected miscellaneous petition was also closed.

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