Court Orders Release of Goods with Bank Guarantees, Ownership Dispute to Continue

The court directed respondent No.2 to release the goods and vehicle within seven days upon the petitioner furnishing a bank guarantee of Rs. 20,51,833 and an additional bank guarantee for Rs. 1,02,591 as penalty and tax amount. The court clarified that the order did not prejudice the respondent's claim regarding the ownership of the goods and vehicle, leaving the issue of ownership to be determined in a final decision.

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Issues: Detention of goods and vehicle, legality of detention, release of goods and vehicle, bank guarantee, penalty and tax liability, ownership of goods and vehicle

The judgment addressed the issue of the detention of goods and a vehicle by respondent No.2, with the petitioner claiming the detention was illegal, arbitrary, and without jurisdiction due to the availability of all relevant documents for the transaction. The petitioner sought the quashing of the impugned order for tax and penalty, the notice for confiscation, and the release of the goods and vehicle without requiring any security. The petitioner's counsel requested the release of the goods and vehicle, offering to provide a bank guarantee for the total liability arising from an award dated 15.01.2019. The respondents' counsel opposed this submission. The court disposed of the petition by directing the respondents to release the goods and vehicle within seven days, subject to the petitioner furnishing a bank guarantee of Rs. 20,51,833 and an additional bank guarantee for Rs. 1,02,591 as penalty and tax amount. However, the court clarified that this order did not prejudice the respondent's claim regarding the ownership of the goods and vehicle, indicating that the issue of ownership would be subject to a final decision.

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