Provisional release of seized goods ordered on bank guarantee while seizure merits and alternative remedy objection remain open.

Pending consideration of the legality of seizure and the preliminary objection on alternative remedy, the Gujarat High Court balanced business hardship against revenue protection at the interim stage. It directed provisional release of the remaining seized goods on furnishing a bank guarantee, while allowing the DRI to retain goods up to the specified value. The merits of the seizure and the objection remained open for later examination.

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Issues: Whether the seized goods were to be provisionally released pending further hearing, and on what terms, while leaving the merits of the seizure and the objection as to alternative remedy open.

Analysis: The order records that the legality and validity of the seizure, as well as the preliminary objection based on alternative remedy, were to be examined later. At the interim stage, the Court considered the business hardship to the petitioners and the need to safeguard the Revenue, and therefore balanced the equities by directing a limited bank guarantee and permitting retention of goods up to a stated value.

Conclusion: The petitioners were granted partial interim relief by way of provisional release of the remaining goods on furnishing a bank guarantee of Rs. 2 crores, while the DRI was permitted to retain goods up to the specified value.

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