GST seizure relief: goods released on furnishing security or an indemnity bond to protect alleged tax liability.

Goods seized from a business premises under the Uttar Pradesh GST law were directed to be released on protective terms pending the State's response. The court allowed interim release under Section 67 of the Uttar Pradesh Goods and Services Tax Act read with Rule 139 of the Uttar Pradesh Goods and Services Tax Rules, subject to furnishing security other than cash or bank guarantee, or alternatively an indemnity bond, to the satisfaction of the seizing authority. The release was designed to secure the alleged tax and penalty liability while permitting the goods to be restored forthwith.

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Issues: Whether the goods seized from the petitioner's business premises under the GST law could be directed to be released on furnishing security or an indemnity bond.

Analysis: The goods had been seized under Section 67 of the Uttar Pradesh Goods and Services Tax Act read with Rule 139 of the Uttar Pradesh Goods and Services Tax Rules. The Court granted the State time to file a counter affidavit and, in the meantime, allowed release of the goods on terms designed to secure the alleged tax and penalty liability. The relief was made conditional upon deposit of security other than cash or bank guarantee, or alternatively an indemnity bond, to the satisfaction of the seizing authority.

Conclusion: The petitioner's goods were permitted to be released forthwith on furnishing the stipulated security or indemnity bond.

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