Alternative security for detained goods release accepted; bank guarantee alone could not be insisted on when rules allowed other modes.

Where the governing rules allow alternative modes of security for release of detained transit goods, the authority cannot insist only on a bank guarantee if another permitted and acceptable form is offered. The Rajasthan HC noted that Rule 77 of the Rajasthan Value Added Tax Rules, 2006 contemplated multiple securities, and the petitioner's bond in RVAT Form 64 with two local sureties acceptable to the authorised officer was sufficient. Release of the truck and goods on that security was warranted, and bank guarantee alone was not required.

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Issues: Whether the detained truck and goods were liable to be released on furnishing security other than bank guarantee, and whether the authority could insist only on bank guarantee despite the alternative modes of security under the Rules.

Analysis: The challenge arose from detention of the truck and goods during transit and the consequential insistence on security for release. The relevant statutory framework permitted interim protection and recovery-related safeguards, while Rule 77 of the Rajasthan Value Added Tax Rules, 2006 contemplated multiple modes of furnishing security. In the circumstances, and in view of the earlier orders relied upon, there was no justification to compel only one form of security when the petitioner had offered a bond in Form RVAT-64 with two sureties acceptable to the authorised officer. The Court also noted that the appeal on merits was already pending before the first appellate authority and was directed to be decided expeditiously.

Conclusion: The petitioner was entitled to release of the truck and goods on furnishing security by bond in RVAT Form 64 with two local sureties acceptable to the authorised officer, and insistence on bank guarantee alone was unwarranted.

Ratio Decidendi: Where the governing rules prescribe alternative modes of security, the authority cannot insist on a bank guarantee alone if another statutorily permitted and acceptable mode of security is offered.

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