Cash security not mandatory for release of detained goods where alternative security adequately protects revenue interests.

Where detained goods under the U.P. Sales Tax Act were not yet finally found to have been transported with intent to evade tax, the revenue interest could be protected by security other than cash. Section 13-A(6) and its proviso allowed release of seized goods on deposit or, for recorded reasons, on another form of security. Cash security alone was therefore not mandatory, and the goods could be released on alternative security such as a bank guarantee to the satisfaction of the authority.

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Issues: Whether goods detained under section 28-A(6) read with section 13-A(6) of the U.P. Sales Tax Act could be released on furnishing security other than cash, instead of insisting on cash security only.

Analysis: Section 28-A(6) permits detention of goods where the transporting documents are not proper or genuine and the authority is satisfied, for reasons recorded, that the goods were being transported in an attempt to evade tax. Section 13-A(6) authorises release of seized goods on deposit of an amount sufficient to cover the tax and penalty likely to be imposed, while its proviso permits release on security of another nature for sufficient recorded reasons. The record showed irregularities in the accompanying documents, but the question whether they amounted to an attempt to evade tax had not yet been finally determined. At that stage, the purpose of safeguarding the revenue could be achieved by a security other than cash, including a bank guarantee.

Conclusion: The demand for cash security only was not justified, and the goods could be released on furnishing alternative security to the satisfaction of the authority.

Ratio Decidendi: Where the statute permits release of detained goods on security and the revenue's interest can be adequately protected, insistence on cash security alone is not mandatory.

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