Court allows release of detained goods with bank guarantee under GST Act Section 130

The court upheld the detention of vehicles and goods due to the non-production of an e-way bill for the first leg of the journey. However, the petitioner was allowed to secure release by furnishing a bank guarantee for the demanded amount. The court directed the respondent to release the vehicles and goods upon receipt of the bank guarantee and proceed with adjudication under Section 130 of the GST Act to address objections regarding tax and penalty imposition. This decision promotes a fair resolution process and emphasizes compliance with legal procedures outlined in the GST Act.

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Issues: Detention of vehicles and goods due to non-production of e-way bill, request for release on furnishing bank guarantee, adjudication under Section 130 of the GST Act.

The judgment addresses the detention of vehicles and goods based on the non-production of an e-way bill. The petitioner had produced the e-way bill covering the second leg of the journey but failed to provide the e-way bill for the first leg. The court found the detention justified under these circumstances. However, considering the petitioner's request to obtain a release by furnishing a bank guarantee for the demanded amount, the court directed the respondent to release the vehicles and goods upon receiving the bank guarantee. The court further instructed the respondent to proceed with adjudication under Section 130 of the GST Act, where the petitioner's objections regarding tax and penalty imposition would be considered.

The judgment emphasizes that the respondent must release the vehicles and goods upon the petitioner furnishing a bank guarantee covering the amount demanded in the detention notices. It also highlights the importance of adjudicating the matter under the provisions of the GST Act, specifically Section 130, where the objections raised by the petitioner regarding tax and penalty imposition will be addressed. The court's directive aims to ensure a fair and lawful resolution to the dispute, maintaining the legal procedures outlined in the GST Act.

The court's decision to dispose of the writ petition in the manner described signifies a balanced approach to the issue at hand. By allowing the petitioner to secure the release of the vehicles and goods through a bank guarantee and ensuring a proper adjudication process under the GST Act, the judgment promotes a transparent and structured resolution mechanism for disputes related to tax and penalty imposition. The communication of the order by the learned Government Pleader to the respondents underscores the urgency in facilitating the prompt clearance of the vehicles and goods, emphasizing efficiency and compliance with legal directives.

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