Court Orders Immediate Release of Goods Upon Security, Requests Affidavits for Further Consideration

The court directed that upon the petitioners providing security of equal value as per Section 129(1)(a) of U.P. GST, the goods and the vehicle would be released immediately. The court acknowledged the need for further consideration of the case, allowing both parties to submit affidavits for detailed examination before reaching a decision. The applicability of a circular from 2017 in light of a subsequent rule amendment in 2018 was a key point of contention in the case regarding the seizure of goods due to a lack of proper E-way bill.

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Issues:
1. Seizure of goods due to lack of proper E-way bill.
2. Applicability of circular dated 16th August 2017.
3. Amendment in Rule 138 of the Rules from 1.4.2018.
4. Provision of Section 129 (1)(a) of U.P. GST for release of goods.

Analysis:
1. The petitioners, who are selling and purchasing dealers of goods in transit, had their goods seized as they did not have a proper E-way bill accompanying them. The petitioner's counsel argued that the E-way bill was generated before the interception of the goods and a proper E-way bill with due Part B was downloaded later. The counsel cited a circular dated 16th August 2017 to support the argument that no seizure proceedings should have been initiated in this case.

2. The respondent's counsel contended that the circular from 2017 might not be applicable due to an amendment in Rule 138 of the Rules, which came into effect from 1.4.2018. This raises the question of whether the circular's provisions are still valid post the amendment and whether the seizure was justified under the amended rule.

3. The court acknowledged the need for further consideration on the matter. The respondent was given three weeks to file a counter affidavit, followed by an additional week for the petitioner to file a rejoinder affidavit. This indicates that the court is keen on examining the arguments presented by both parties in detail before reaching a decision.

4. In the interim, the court directed that upon the petitioners providing security of equal value to the satisfaction of the concerned authority, other than cash, bank guarantee, or indemnity bond, as per Section 129 (1)(a) of U.P. GST, the goods and the vehicle would be released immediately. This provision allows for the release of goods upon meeting specific security requirements, ensuring compliance with the relevant GST laws.

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