Transit goods release on security and indemnity bond where repeated e-way bill use was not supported by material.

Goods and vehicle retained in transit on an allegation of repeated use of the same e-way bill were directed to be released, as the record disclosed no material showing actual double use. Pending the counter affidavit, interim protection was granted on compliance with the statutory security requirement and an indemnity bond. Release was conditioned on furnishing security other than cash or bank guarantee and an indemnity bond equivalent to the proposed tax and penalty under the U.P. GST regime.

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Issues: Whether the goods and vehicle retained in transit were liable to be released on furnishing security and an indemnity bond when the seizure was based on an alleged repeated use of the same e-way bill.

Analysis: The retention of the goods was questioned because the record disclosed no material showing that the same e-way bill had in fact been used twice. Pending counter affidavit, the Court granted interim protection by directing release on compliance with the statutory security requirement and an indemnity bond equivalent to the proposed tax and penalty.

Conclusion: The petitioner was entitled to release of the goods and vehicle on furnishing security other than cash and bank guarantee and an indemnity bond as contemplated by Section 129(1)(a) of the U.P. Goods and Services Tax Act, 2017.

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