High Court orders release of goods with Bank Guarantee and bond under Rule 140(1) of CGST Rules

The High Court directed the respondent authorities to release the petitioners' goods and vehicle upon the petitioners furnishing a Bank Guarantee for the tax and penalty due, along with a bond for the value of goods as per Rule 140(1) of the CGST Rules. The Court disposed of the writ petition with this direction, providing relief to the petitioners in the matter of the detained goods and vehicle due to the expired e-way bill under the GST Act.

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Issues: Detention of goods and vehicle due to expired e-way bill under GST Act

In the present case, the petitioners, who are assessees under the GST Act and manufacture Airconditioners, had their goods and vehicle detained by the Assistant State Tax Officer due to the expiration of the e-way bill. The petitioners sought relief through a writ petition, requesting the quashing of the orders issued by the respondents and the release of the detained goods and lorry unconditionally. The petitioners also sought other incidental reliefs, including costs.

The High Court referred to a previous judgment in Renji Lal Damodaran v. State Tax Officer, where an identical issue was addressed by the Division Bench. Based on the ratio of that judgment, the Court directed the respondent authorities to release the petitioners' goods and vehicle upon the petitioners furnishing a Bank Guarantee for the tax and penalty due, along with a bond for the value of goods as per Rule 140(1) of the CGST Rules. The Court disposed of the writ petition with this direction, providing relief to the petitioners in the matter of the detained goods and vehicle due to the expired e-way bill under the GST Act.

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