Conditional release of detained goods upheld on payment of one-time tax and furnishing of security for compounding amount

Detained goods were directed to be released on compliance with statutory conditions requiring payment of the one-time tax demanded and furnishing of a personal bond for the compounding amount within the stipulated time. The court accepted the conditional mechanism for release despite the tax evasion allegation, and ordered immediate release of the goods once those monetary requirements were met. The writ petition was disposed of on that basis.

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Issues: Whether the detained goods were liable to be released on compliance with conditions relating to payment of one-time tax and furnishing of security for the compounding amount.

Analysis: The goods were detained on a tax evasion allegation, while the petitioner asserted that the movement was pursuant to local sale to a Karnataka buyer and relied on the statutory mechanism for release upon payment of tax or furnishing of security. The order accepted a conditional course: the petitioner was required to pay the one-time tax demanded and furnish a personal bond for the compounding amount within the stipulated time, upon which the respondent was directed to release the goods forthwith.

Conclusion: The detained goods were ordered to be released subject to compliance with the specified monetary conditions, and the writ petition was disposed of accordingly.

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