https://www.taxtmi.com/caselaws?id=330393 Under the Tamil Nadu Value Added Tax Act, a detention officer acting under the goods detention provisions may require payment of tax or security for release of goods, but has no statutory authority to levy penalty. Section 71(3), being a penal provision for offences and consequential proceedings, could not be invoked in the course of detention proceedings. Amounts collected on release of detained goods must therefore be treated in accordance with the detention power exercised and not recharacterised as penalty. The amount paid for release was directed to be treated as tax, while the assessee was left free to pursue any adjustment remedy available under the Act. en-us Tue, 14 Jun 2016 00:00:00 +0530 Sun, 24 Jul 2016 20:33:22 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=330393 Under the Tamil Nadu Value Added Tax Act, a detention officer acting under the goods detention provisions may require payment of tax or security for release of goods, but has no statutory authority to levy penalty. Section 71(3), being a penal provision for offences and consequential proceedings, could not be invoked in the course of detention proceedings. Amounts collected on release of detained goods must therefore be treated in accordance with the detention power exercised and not recharacterised as penalty. The amount paid for release was directed to be treated as tax, while the assessee was left free to pursue any adjustment remedy available under the Act. Case-Laws VAT and Sales Tax Tue, 14 Jun 2016 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=330393