Court orders release of goods upon bank guarantee submission under CGST Act, 2017.

The Court disposed of the writ petition challenging the legality of detention orders under the CGST Act, 2017. The petitioner agreed to provide a bank guarantee for tax and penalty amounts demanded but raised concerns about continuous bank guarantee maintenance. The Court directed the petitioner to submit the bank guarantee within two days for the release of goods, with the respondent ordered to release the goods within twelve hours of receipt. The respondent was instructed to complete the enquiry, provide a fair opportunity to the petitioner, and communicate the order within four weeks, relieving the petitioner from maintaining the bank guarantee beyond six weeks if not complied with.

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Issues:
Challenging legality of detention order and notice under CGST Act, 2017.

Analysis:
The petitioner challenged the legality of Exts.P11 and P12 notices issued by the 1st respondent under the CGST Act, 2017, claiming compliance with all Act requirements. The petitioner argued that the detention of goods was unwarranted and illegal as they were able to demonstrate compliance within the given time. The Government Pleader contended that there was an omission in transporting goods as all required documents were not produced during inspection. The detention order was deemed non-final, with provisions for release upon compliance with Section 129 of the Act, including furnishing a bank guarantee for tax and penalty amounts demanded through Ext.P12.

In response, the petitioner expressed confidence in the lawful transit of goods, agreeing to provide a bank guarantee but raised concerns about the authority not issuing final orders, leading to continuous bank guarantee maintenance. The petitioner highlighted the substantial commission charged by the bank for the guarantee, posing a financial burden. The Court, after considering the arguments, disposed of the writ petition without delving into the merits, emphasizing adherence to the Act's scheme.

The Court directed the petitioner to submit a bank guarantee for tax and penalty as per Ext.P12 within two days for the release of detained goods. The 1st respondent was ordered to release the goods within twelve hours of receiving the bank guarantee, keeping it valid for six weeks. Additionally, the respondent was instructed to complete the enquiry, provide a fair opportunity to the petitioner as per the Act, and communicate the order within four weeks. Failure to comply would relieve the petitioner from maintaining the bank guarantee beyond the specified period.

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