Detention of goods and one time tax payment while preserving the right to seek revision

Detained goods were directed to be released on payment of the one time tax, while preserving the consignor's right to pursue revision before the competent authority. The detention had been challenged on the basis that supporting documents accompanied the consignment and that failure to generate an e-transit pass was only a technical lapse. The respondent relied on Section 72(1)(a) of the Tamil Nadu Value Added Tax Act on an allegation of evasion, but the course accepted was payment of the one time tax without prejudice to the petitioner's contentions in revision. On payment, the goods were to be released.

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Issues: Whether the detained goods were to be released on payment of the one time tax and whether the detention was to stand subject to the petitioner's right to pursue revision.

Analysis: The detention was challenged on the footing that the consigment was accompanied by supporting documents and that the non-generation of an e-transit pass was only a technical lapse. The respondent invoked Section 72(1)(a) of the Tamil Nadu Value Added Tax Act on the allegation of evasion. The Court noted the petitioner's right to file revision before the appropriate authority and accepted the course suggested by the respondent, namely payment of the one time tax without prejudice to the petitioner's contentions in revision.

Conclusion: The petitioner was directed to pay the one time tax and, on such payment, the respondent was directed to release the detained goods consignment.

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