Detained goods release on simple bond without surety where tax dispute remains for separate adjudication.

Goods detained on the allegation of possible tax evasion were ordered to be released on execution of a simple bond without surety for the amount demanded, as the dealer was registered and had relied on the consignee's declaration and the claim that any CST liability would arise in another State. The court left the merits of the detention and tax dispute to the adjudicating authority for decision after hearing the petitioner, and did not require a security deposit in place of the bond.

---

---

Issues: Whether the detained consignment and vehicle were liable to be released on furnishing a simple bond without surety in place of the security deposit demanded in the detention notice, pending adjudication.

Analysis: The detention was based on the view that the petitioner had not established that the goods were purchased in the course of import and that there was a possibility of tax evasion. The petitioner relied on the consignee's declaration and the fact that any CST liability, if at all, would arise in another State. Taking note of these submissions and the petitioner's status as a registered dealer, the release of the goods and vehicle was directed on execution of a simple bond without surety for the amount demanded, while leaving the merits of the dispute to be decided by the adjudicating authority after hearing the petitioner.

Conclusion: The petitioner was entitled to release of the goods and vehicle on furnishing a simple bond without surety, and the matter was to be adjudicated separately.

---