High Court orders release of detained goods & vehicles with deposit & bank guarantee

The High Court granted an interim order for the release of goods and vehicles detained by the GST authority. The Court directed the writ-applicant to deposit a specified amount towards tax and provide a bank guarantee for the penalty. Upon compliance, the goods and vehicles were to be released immediately. The Court deferred the decision on the legal issues raised by the writ-applicant for a later date.

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Issues: Release of detained goods and conveyance by GST authority

Analysis:
1. The High Court, comprising Mr. J.B. Pardiwala and Mr. Bhargav D. Karia JJ., heard arguments from both parties and reviewed the case materials.
2. The Court acknowledged that the writ-applicant presented a strong prima facie case warranting an interim order in their favor.
3. The main issue at hand was whether the Court should order the release of goods and vehicles detained and seized by the GST authority.
4. Noting the involvement of four vehicles carrying electrical goods and a notice issued under Section 129(3) of the GST Act, the Court considered the gravity of the situation.
5. The writ-applicant's counsel informed the Court about the receipt of an order indicating a substantial liability of around Rs. 1,00,81,944.
6. While deferring the decision on the legal issues raised by the writ-applicant for a later date, the Court decided to grant an interim order for the release of the goods and vehicles.
7. The Court directed the writ-applicant to deposit Rs. 50,40,972 towards tax with one respondent and provide a bank guarantee for the same amount towards penalty with a nationalized bank.
8. Upon compliance with the deposit and bank guarantee requirements, the authority was instructed to release the goods and vehicles immediately, allowing for direct service.

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