Interim release of seized vehicle and goods granted after tax liability and penalty were deposited, pending confiscation challenge.

Pending adjudication of the writ petition, interim release of a seized vehicle and goods was warranted because the tax liability and penalty had already been deposited. The court did not finally decide whether the authority could directly invoke confiscation without first using the seizure and detention mechanism; it confined itself to interim protection on the facts before it. As a result, the vehicle and goods were directed to be released forthwith in favour of the petitioner.

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Issues: Whether, pending adjudication of the writ petition, the seized vehicle and goods should be released when the tax liability and penalty had already been deposited and the matter raised a question on direct invocation of confiscation proceedings.

Analysis: The writ applicant had deposited the amount towards tax liability and penalty. In these circumstances, and without entering into the larger question whether the authority could directly invoke confiscation without first resorting to the intermediary seizure and detention mechanism, interim protection was warranted.

Conclusion: The vehicle and the goods were directed to be released forthwith in favour of the petitioner.

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