Court orders release of goods upon Bank Guarantee and bond submission under CGST Rules

The High 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, providing a resolution to the issue of detention of goods due to expired e-way bills, following the precedent set in a previous judgment.

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Issues:
Detention of goods due to expired e-way bills.

Analysis:
The petitioner, a private limited company, faced detention of goods sent to distributors in Palakkad District because the e-way bills had expired. Seeking relief, the petitioner filed a writ petition requesting the release of the detained goods. The petitioner specifically sought a writ of mandamus or any other appropriate writ order to secure the release of the goods. Additionally, the petitioner requested any other relief deemed fit by the court in the circumstances of the case.

The High Court referenced a previous judgment in Renji Lal Damodaran Vs. State Tax Officer, where an identical issue was addressed. Applying 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. With this direction, the court disposed of the writ petition, providing a resolution to the issue of detention of goods due to expired e-way bills.

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