Provisional release of detained GST goods allowed on partial deposit and security, with limited extension to file appeal.
Detained goods under the GST regime may be provisionally released on payment of a part of the disputed tax and penalty, together with furnishing of security for the balance; here, release was directed on deposit of 25% of the disputed demand and execution of a bond for the remaining amount. The document also notes that, where the ordinary limitation period for appeal has expired, a limited extension may be granted to preserve the statutory appellate remedy; in this instance, the appeal was permitted if filed within 15 days from the order. The matter was thus disposed of by conditional release and preservation of appellate rights.
Issues: (i) Whether the detained goods and materials were liable to be released provisionally on payment of a part of the disputed tax and penalty and furnishing of security; (ii) Whether the time for filing an appeal should be extended for a limited period.
Issue (i): Whether the detained goods and materials were liable to be released provisionally on payment of a part of the disputed tax and penalty and furnishing of security.
Analysis: The detention was followed by notice and demand under the provisions governing tax and penalty for alleged illegal transportation. The parties agreed that provisional release could be ordered on the petitioner depositing a part of the disputed demand and securing the balance by bond, with release to follow upon compliance.
Conclusion: The detained goods and materials were directed to be released on deposit of 25% of the disputed tax and penalty and on furnishing a bond securing the remaining demand.
Issue (ii): Whether the time for filing an appeal should be extended for a limited period.
Analysis: The petitioner's difficulty in availing the appellate remedy due to expiry of the ordinary limitation period was considered, and a limited extension was granted to preserve the statutory remedy.
Conclusion: If the appeal is filed within 15 days from the date of the order, the period of limitation stands extended up to that period.
Final Conclusion: The writ petition was disposed of by granting conditional provisional release of the detained goods and by preserving the petitioner's opportunity to pursue the appellate remedy within the extended period.
Ratio Decidendi: Where detention of goods under the GST regime is challenged, provisional release may be ordered on partial deposit of the disputed demand and adequate security, while a limited extension of time may be granted to enable recourse to appeal.
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