Registered dealer release on surety bond cannot be replaced by bank guarantee under detention provisions.

Where a taxing statute permits release of detained goods from a registered dealer on furnishing a surety bond, the detaining authority cannot insist on bank guarantee or cash security. The provision distinguishes registered from unregistered consignors or consignees: registered persons may secure release by executing a bond with sureties in the prescribed form, while bank guarantee, cash security or crossed bank draft is confined to unregistered persons. The officer therefore had no authority to reject the surety bond tendered by the registered dealer, and detention continued on an unlawful security condition was unsustainable.

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Issues: Whether goods detained under section 14-B(6)(i) of the Punjab General Sales Tax Act, 1948 had to be released on the registered dealer furnishing a surety bond, or whether the detaining officer could insist on bank guarantee or cash security.

Analysis: The provision governing detention and release of goods expressly distinguishes between registered and unregistered persons. For a registered consignor or consignee, release is to follow on furnishing security or executing a bond with sureties in the prescribed form and manner to the satisfaction of the detaining officer. The requirement of cash security, bank guarantee, or crossed bank draft is confined to cases where the consignor or consignee is not registered under the Act. The officer, therefore, has no authority to reject a surety bond furnished by a registered dealer and insist instead on bank guarantee.

Conclusion: The detaining officer was bound to release the goods on the petitioner, being a registered dealer, furnishing a surety bond; insistence on bank guarantee was unlawful and the impugned detention orders were unsustainable.

Ratio Decidendi: Where a taxing statute specifically provides release of detained goods on a registered dealer furnishing a surety bond, the detaining authority cannot impose a more onerous security condition reserved for unregistered persons.

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