Goods detention under Tamil Nadu VAT cannot rest only on missing online forms when invoice and lorry receipt are available.

Detention of goods under the Tamil Nadu VAT framework cannot rest solely on non-production of online Form JJ and the transporter's Form MM where invoice and lorry receipt are available and the movement is claimed as a stock transfer. Section 69 of the Tamil Nadu Value Added Tax Act, 2006 read with Rule 15 of the Tamil Nadu Value Added Tax Rules, 2007 requires a sale bill or equivalent supporting document, and the absence of computer-generated forms alone does not justify detention if the statutory documentation is otherwise satisfied. On the stated facts, the detention order and consequential demand for tax and compounding fee were held unsustainable, and release of the goods and vehicle followed.

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Issues: Whether goods could be detained and tax with compounding fee imposed solely for non-production of online Form JJ and the transporter's Form MM when invoice and lorry receipt were available and the transaction was claimed to be a stock transfer.

Analysis: Section 69 of the Tamil Nadu Value Added Tax Act, 2006 read with Rule 15 of the Tamil Nadu Value Added Tax Rules, 2007 was held to require a sale bill or equivalent supporting document. The detention was based only on the absence of the online forms, while the petitioner's stand that the movement was by stock transfer and not a sale was not properly considered. On facts, the earlier decision in a similar matter was treated as applicable, where invoice and lorry receipt were found sufficient and non-production of the computer-generated forms alone was held not to justify detention.

Conclusion: The detention order and the demand for tax and compounding fee were unsustainable; the writ petition was allowed and the goods and lorry were directed to be released.

Final Conclusion: The impugned detention and consequential monetary demand were set aside, and the petitioner obtained release of the goods and vehicle.

Ratio Decidendi: Detention of goods cannot rest solely on non-production of online transport forms where the statutory scheme is satisfied by the sale bill or equivalent documents and the surrounding facts show that no sale transaction is involved.

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