Conditional release of detained perishable goods allowed on deposit and security, while legality of seizure was left open.
Where detained goods are perishable and have remained under seizure for a prolonged period, the Court considered conditional release appropriate to protect revenue while preserving the authorities' ability to proceed in accordance with law. Release was permitted on deposit and security, together with compliance with the fresh e-way bill procedure for movement to the destination. The Court declined to examine the correctness of the detention, seizure, route taken, or other rival contentions on merits, leaving those issues open for appropriate proceedings after delivery of the goods and production of the movement documents.
Issues: (i) Whether the detained goods should be released pending adjudication on the petitioner furnishing deposit and security. (ii) Whether the revisions should be decided on merits or disposed of without entering into the merits of the controversy.
Issue (i): Whether the detained goods should be released pending adjudication on the petitioner furnishing deposit and security.
Analysis: The goods had remained detained for more than 14 months and were stated to be perishable in nature. Without deciding the dispute as to the correctness of the detention and seizure, the Court considered it to secure the revenue while permitting release of the goods. The order required cash deposit and security, and also directed compliance with the fresh e-way bill procedure for movement of the goods to the destination.
Conclusion: The goods were directed to be released conditionally on deposit and security, in favour of the assessee.
Issue (ii): Whether the revisions should be decided on merits or disposed of without entering into the merits of the controversy.
Analysis: The Court expressly declined to enter into the merits of the rival contentions regarding the validity of detention, the route taken by the vehicle, and the correctness of the seizure. The matter was left open for appropriate proceedings by the authorities in accordance with law after the goods were delivered and the movement documents were produced.
Conclusion: The revisions were disposed of without adjudication on merits.
Final Conclusion: The Court granted only conditional release-related relief while leaving the substantive dispute open for determination in accordance with law.
Ratio Decidendi: Where detained goods are perishable and have remained seized for a prolonged period, the Court may order conditional release on adequate deposit and security without deciding the legality of the detention on merits.
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