Provisional release of seized gold jewellery allowed with third-party bank guarantees accepted under Kerala GST rules.

Section 67(6) of the Kerala State GST Act permits provisional release of seized goods on execution of a bond and furnishing of security in the prescribed manner, and Rule 140(1) specifies release on a bond for the value of the goods and a bank guarantee for applicable tax, interest and penalty. The provisions do not require the security to be furnished only by the person seeking release. Where the petitioner could not furnish the guarantee personally and third parties were willing to do so, there was no legal impediment to accepting that security. Provisional release of the seized gold jewellery was therefore directed, with third-party bank guarantees permitted.

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Issues: Whether seized gold jewellery could be released provisionally pending confiscation proceedings, and whether bank guarantee furnished by third parties could be accepted for that purpose.

Analysis: Section 67(6) of the Kerala State Goods and Services Tax Act enables provisional release of seized articles on execution of a bond and furnishing of security in the manner and quantum prescribed, while Rule 140(1) of the Kerala State Goods and Service Tax Rules provides for release on a bond for the value of the goods and a bank guarantee for the applicable tax, interest and penalty. The provisions do not require that the security must necessarily be furnished only by the person seeking release. Since the petitioner was unable to furnish the bank guarantee personally and third parties were willing to furnish the guarantee, there was no legal impediment to accepting such security.

Conclusion: The seized jewellery was directed to be released provisionally, and bank guarantees furnished by third parties were permitted to be accepted in place of a guarantee furnished by the petitioner.

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