Court orders submission of bank guarantee for tax and penalty, directs release of goods.

The Court disposed of the writ petition without detailed examination, directing the petitioner to submit a bank guarantee for tax and penalty specified in Ext.P2 within two days for goods' release. The respondent was ordered to release goods within twelve hours of receiving the bank guarantee, keeping it valid for six weeks. The respondent must complete the enquiry, offer a fair opportunity to the petitioner, and communicate the order within four weeks; failure to comply would release the petitioner from the bank guarantee obligation after six weeks.

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

Analysis:
The petitioner contested the legality of Exts.P1 and P2 notices issued by the respondent, claiming full compliance with the Act but inability to demonstrate correctness of transported goods' documents during inspection. The petitioner argued that the proceedings initiated through Exts.P1 and P2 were unwarranted and illegal.

The Government Pleader raised objections to the writ petition's maintainability, highlighting an admitted omission or illegality in goods transportation. The Pleader emphasized that the detention order was not final, as Section 129 of the Act provided for both detention and release of goods upon compliance with its mandates. The Pleader suggested the petitioner could furnish a bank guarantee for the demanded tax and penalty amount to secure the goods' release.

In response, the petitioner's counsel expressed confidence in the goods' lawful transit, agreeing to provide a bank guarantee but raising concerns about the authority's delay in issuing final orders, resulting in ongoing bank guarantee obligations and associated costs.

The Court, after considering the arguments, disposed of the writ petition without delving into the merits, citing the preliminary stage of the raised issues. The Court directed the petitioner to submit a bank guarantee for the tax and penalty amount specified in Ext.P2 for goods' release within two days. The respondent was ordered to release the detained goods within twelve hours of receiving the bank guarantee, keeping it valid for six weeks. The respondent was instructed to complete the enquiry, provide a fair opportunity to the petitioner, and communicate the order within four weeks; failure to do so would relieve the petitioner from maintaining the bank guarantee beyond six weeks.

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