Court orders release of goods upon Bank Guarantee and bond submission for tax and penalty

The Court directed the respondent authorities to release the petitioner's goods and vehicle upon the petitioner furnishing a Bank Guarantee for tax and penalty due, along with a bond for the value of goods as prescribed under Rule 140(1) of the CGST Rules. The Court disposed of the writ petition based on this direction.

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Issues:
Detention of goods due to expired e-way bill and manipulated invoice under CSGST Act.

Analysis:
The petitioner, a dealer under the CSGST Act, faced detention of goods and vehicle due to the expiry of the Ext.P2 e-way bill and alleged manipulation of the invoice number as seen from Ext.P1 invoice. The petitioner filed a writ petition seeking to quash Ext.P3, P3(A), Ext.P5 notices, and P4 order issued by the respondent under sections 129(1) of the CGST and SGST Act. The petitioner also requested other appropriate reliefs in the circumstances of the case.

The learned Division Bench of the Court referred to a previous judgment in Renji Lal Damodaran Vs. State Tax Officer, which dealt with a similar issue. Following the ratio of that judgment, the Court directed the respondent authorities to release the petitioner's goods and vehicle upon the petitioner furnishing a Bank Guarantee for tax and penalty due, along with a bond for the value of goods as prescribed under Rule 140(1) of the CGST Rules. Consequently, the Court disposed of the writ petition based on this direction.

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