1. Issue notice. Mr.K.Venkatesh, learned Government Advocate, accepts notice on behalf of the respondent.
1.1. With the consent of learned counsels for the parties, the writ petition is taken up for hearing and final disposal.
2. This writ petition is directed against the order dated 04.01.2017, passed by the respondent.
2.1. By virtue of the impugned order, the respondent has imposed one time tax in the sum of Rs.4,82,705/-, and also compounding fee equivalent to twice the amount of the tax levied upon the petitioner.
2.2. Consequently, the petitioner has been called upon to pay compounding fee in the sum of Rs.9,65,410/-.
3. Learned counsel for the petitioner says that the subject transaction is an inter-state sale, and therefore, would be liable to tax under the Central Sales Tax Act, 1956.
3.1. According to the learned counsel for the petitioner, no local sale had taken place, and therefore, no tax under the Tamil Nadu Value Added Tax Act, 2006 would be payable.
3.2. However, in order to expedite the release of the detained goods, learned counsel for the petitioner says that the petitioner would pay one time tax in the sum of Rs.4,82,705/-, without prejudice to its rights and contentions.
3.3. Furthermore, learned counsel for the petitioner says that liberty may also be granted to challenge the compounding fee imposed by the respondent.
4. Mr.K.Venkatesh, who appears for the respondent, submits that if, one time tax is paid, the detained goods will be released, forthwith.
5. Accordingly, the writ petition is disposed of with a direction that, if, the petitioner, were to deposit the one tax, as indicated in the impugned order, i.e., a sum of Rs.4,82,705/-, the respondent will release the detained goods forthwith. This, though, would be without prejudice to the rights and contentions of the petitioner, both qua tax and the compounding fee, imposed via the impugned order. There shall, however, be no order as to costs.