HC confirms penalty on goods transmitted without proper invoice and transport document

The Madras High Court in the matter of M/s.Kumutham Agencies Vs. State Tax Officer-II has confirmed penalty on goods transmitted without proper invoice and transport document.

The fact on record indicate that the vehicle bearing Registration No.TN 31 CD 0115 was intercepted by the officers of the 2nd respondent and statement from the Driver of the lorry was recorded.

The specific case of the petitioner is that the aforesaid vehicle was carrying diesel, which is highly inflammable. Since the road between Cuddalore and Seerkazhi are under repair, the Driver took a different route and when the Driver was taking food, the Roving Squad came and seized the vehicle.

The learned counsel for the petitioner would submit that the explanation offered by the petitioner has not been accepted, as the vehicle had taken a different route to avoid jerk to reduce the risk of the vehicle catching fire while in transit.

The learned Government Advocate for the respondents on the other hand would submit that the impugned order detaining the goods and imposing penalty twice the amount of duty was well reasoned and does not require any interference. That apart, it is submitted that the petitioner has alternate remedy before the Commissioner and therefore, the petitioner should be relegated to work out the remedy before the Appellate Commissioner.

Although the learned counsel for the petitioner would submit that the petitioner is willing to pay the duty. As far as the penalty is concerned, the learned counsel for the petitioner would submit that the petitioner may be relegated to work out the remedy before the Appellate Commissioner. Fact remains that the movement of diesel was not covered with proper invoice and transport document. In any event, the petitioner was liable to pay the tax under Tamil Nadu Value Added Tax Act, 2006, on the goods. Thus, there is really no concession in the offer made by the learned counsel for the petitioner.

At the same time, considering the fact that the product in the vehicle is diesel which is prone to inflammable, Court is inclined to order provisional release of the vehicle, subject to the petitioner paying the disputed tax that has been arrived in the impugned order and a further sum of Rs.1,00,000/- (Rupees One Lakh Only) towards security penalty imposed within a period of seven days from the date of receipt of a copy of this order.

The amounts to be paid by the petitioner pursuant to this order can be appropriated finally subject to final outcome of the proposed appeal to be filed by the petitioner. The petitioner shall also execute a bond to the satisfaction of the 2nd respondent within such period. Subject to the compliance of the conditions stipulated above, the above vehicle of the petitioner shall be provisionally released.

Accordingly, the Writ Petition stands disposed of with the above observations.

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