E-way bill compliance and interim release of detained goods may be conditioned on bond and bank guarantee where evasion is prima facie possible.

Interim release of detained goods in a case involving e-way bill compliance under Rule 138 of the CGST Rules, 2017 may be conditioned on a simple bond and bank guarantee where prima facie evasion cannot be ruled out. The Court noted that the goods were already taxed and meant for resale, making the factual position materially different from the earlier order relied on by the petitioners. It found the Single Judge's release condition unsustainable on a prima facie view and modified the interim arrangement by directing release on execution of a bond for the value of the goods and a bank guarantee for the tax and penalty demanded, while leaving the merits open in the pending writ petition.

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Issues: Whether the interim order directing release of detained goods on payment of Rs. 10,000 each and simple bonds was sustainable, and what interim conditions should govern release of the goods pending disposal of the writ petition.

Analysis: The writ appeal arose from an interim order in proceedings concerning transport of goods accompanied by invoices, with dispute centering on compliance with the e-way bill requirements under Rule 138 of the Central Goods and Services Tax Rules, 2017. The Court found that the factual situation differed from the earlier decision relied on by the writ petitioners, as the present consignment involved goods already taxed and intended for resale, so the possibility of evasion could not be ruled out at the interim stage. The Court also found that the condition imposed by the learned Single Judge could not be sustained on a prima facie view, but refrained from expressing any final view on the merits since the writ petition was still pending.

Conclusion: The interim order was set aside and the goods were directed to be released on execution of a simple bond for the value of the goods and furnishing of a bank guarantee for the tax and penalty demanded.

Final Conclusion: The appeal succeeded to the extent of modifying the interim arrangement, while leaving the substantive questions open for decision in the writ petition.

Ratio Decidendi: Where detention of goods raises a prima facie issue of e-way bill compliance and possible evasion, interim release may be conditioned on a bond and bank guarantee, and an earlier interim order may be interfered with when the factual basis is materially different.

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