Interim release of seized goods under GST allowed on deposit and indemnity bond pending challenge to proposed tax and penalty.

Pending consideration of the challenge to the proposed tax and penalty under the Uttar Pradesh GST Act, the HC directed interim release of the seized goods and vehicle. Release was permitted on deposit of the amount contemplated by Section 129(1)(a) and furnishing of an indemnity bond for the same amount, while the petition remained open for further adjudication. The court therefore treated the Section 129(1)(a) deposit and bond as sufficient security at the interim stage and did not finally decide the petitioner's substantive challenge.

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Issues: Whether the seized goods and vehicle were liable to be released pending consideration of the petitioner's challenge to the proposed tax and penalty under Section 129 of the Uttar Pradesh Goods and Services Tax Act, 2017, and whether release was to be secured on the basis of Section 129(1)(a) or Section 129(1)(b).

Analysis: The petition was entertained against the order proposing tax and penalty for release of the goods. The respondents were granted time to seek instructions and file a counter affidavit. Pending further consideration, the Court directed release of the seized goods and the vehicle on deposit of the amount contemplated by Section 129(1)(a) and on furnishing an indemnity bond of the same amount.

Outcome: Interim release of the seized goods and vehicle was allowed on the terms directed by the Court, leaving the petitioner's challenge open for further consideration.

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