Provisional release of seized GST goods and vehicle allowed on furnishing bank guarantee under detention provisions.

Goods and vehicles detained under the Uttar Pradesh GST Act, 2017 may be provisionally released where seizure is made under Section 129(1) and notice under Section 129(3) specifies tax and penalty for release. On the facts stated, the goods were said to belong to the petitioner and the selling dealer had already received full payment. The Court directed release on furnishing a bank guarantee equivalent to the amount payable under Section 129(1)(a), with any earlier deposit to be adjusted against the security requirement.

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Issues: Whether seized goods and the vehicle in transit, detained under the Uttar Pradesh Goods and Services Tax Act, 2017, could be released on furnishing security by way of bank guarantee.

Analysis: The goods were stated to belong to the petitioner, who had paid the full value to the selling dealer. The seizure had been made under Section 129(1), and a notice under Section 129(3) had been issued indicating the tax and penalty payable for release of the goods and the vehicle. In these circumstances, the Court directed release of the seized goods and vehicle on furnishing a bank guarantee for an amount equivalent to the amount mentioned under clause (a) of sub-section (1) of Section 129.

Conclusion: The petitioner was entitled to release of the seized goods and vehicle upon furnishing the stipulated bank guarantee, with any earlier deposit to be adjusted.

Final Conclusion: The writ petition succeeded to the extent of securing provisional release of the seized goods and vehicle against bank guarantee.

Ratio Decidendi: Goods and vehicles detained under Section 129 may be released provisionally on furnishing security equivalent to the statutory amount payable for release.

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