Cash security for release of seized goods reduced on interim review while the statutory security order remained in place.

Cash security imposed as a condition for release of seized goods under the West Bengal Value Added Tax Act, 2003 was reduced on interim review, while the separate statutory cash security already imposed was left intact. The goods had been seized for an alleged violation of section 73, but the Court limited its intervention to the release condition and did not examine the merits because the substantive dispute remained pending before the Tribunal. The interim condition was therefore modified by reducing the cash security requirement, without disturbing the existing statutory security order.

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Issues: Whether the cash security directed as a condition for release of seized goods under the West Bengal Value Added Tax Act, 2003 required interference at the interim stage.

Analysis: The goods had been seized on the allegation of violation of section 73 of the West Bengal Value Added Tax Act, 2003. The Tribunal had permitted release of the goods on deposit of cash security of Rs. 32,00,000/- in addition to the statutory cash security already imposed by the First Revisional Authority. The Court held that, on the facts placed before it, the amount of cash security should be reduced, while leaving untouched the statutory cash security. As the substantive dispute was still pending before the Tribunal, the Court declined to enter into the merits of the controversy.

Conclusion: The condition of cash security was modified by reducing it to Rs. 25,00,000/-, while the statutory cash security order was maintained.

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