Seized goods release on tax payment where e-way bill dispute and pending penalty proceedings were in issue

Seizure of goods and vehicle was upheld as a detention matter arising from an expired e-way bill and alleged irregularities on physical verification, but the Court found disputed facts regarding the goods and supporting documents and noted that properly documented goods had already been released. As penalty proceedings were pending and the penalty order was separately appealable, the Court directed release of the seized goods and vehicle on payment of the tax amount mentioned in the show cause notice. It also directed the appellate authority to decide any appeal expeditiously without insisting on deposit of the penalty amount at the stage of hearing or admission.

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Issues: Whether the seized goods and vehicle were liable to be released on payment of the tax amount mentioned in the show cause notice, in view of the disputed factual issues and the pending penalty proceedings.

Analysis: The detention was based on the expiry of the e-way bill and on alleged irregularities noticed on physical verification. The Court found that factual disputes existed regarding the goods and the supporting documents, and noted that the goods covered by proper documents had already been released. It further observed that penalty proceedings had been initiated and that the penalty order was appealable. In these circumstances, the Court directed release of the seized goods and vehicle on payment of the tax amount indicated in the show cause notice and directed the appellate authority to decide any appeal expeditiously without insisting on deposit of the penalty amount at the stage of hearing or admission.

Conclusion: The goods and vehicle were directed to be released on payment of the tax amount specified in the notice, and the writ petition was dismissed.

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