Conditional release of seized goods under GST turned on deposit, indemnity bond, and excess quantity findings.

Seized goods and vehicle in inter-State transit were treated as liable for conditional interim release where the transporter was not a registered dealer and the seizing authority found excess quantity over the disclosed declaration. The Court noted that the VAT-era transit declaration had limited relevance under GST, but also took account of the assessed tax and penalty exposure. On that basis, the goods and vehicle were directed to be released against deposit of the assessed amount and furnishing of an indemnity bond, while the seizure and penalty proceedings were otherwise left undisturbed.

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Issues: Whether the seizure of goods and vehicle and the consequential penalty proceedings were liable to be interfered with, and whether release of the goods and vehicle could be directed on deposit of the amount assessed by the seizing authority.

Analysis: The goods were found to be moving from one State to another through Uttar Pradesh. The petitioner was a transporter and not a registered dealer. The Court accepted that the transit declaration downloaded under the VAT regime had no real bearing on the transaction under the GST regime, but also noted the seizing authority's finding that the goods were in excess of the disclosed quantity. In these circumstances, instead of quashing the action in full, the Court considered it appropriate to secure the estimated tax liability for interim release of the seized goods and vehicle.

Conclusion: The petition was not allowed on merits of the seizure, but release of the goods and vehicle was directed on deposit of Rs. 67,010 in cash or by bank draft and on furnishing of an indemnity bond to the extent of the assessed penalty amount.

Final Conclusion: The writ petition resulted in conditional relief to the petitioner by directing release of the seized goods and vehicle against monetary deposit and security, while leaving the seizure and penalty action otherwise intact.

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