Court orders release of seized goods with bank guarantee, allows investigation to continue

The Court directed the respondents to release the entire seized quantity of goods subject to a bank guarantee, while reserving the right to continue investigation and issue show cause notices. The petitioner's request for release of goods was granted after verification of suppliers and E-way bills, with the condition of a bank guarantee for the balance quantity. The Department was authorized to proceed with the investigation despite the release of goods, and the writ petition and pending applications were disposed of accordingly.

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Issues involved:
1. Seizure of goods and books of account by respondents.
2. Requirement of depositing a specific sum for release of goods challenged by the petitioner.
3. Verification of suppliers and E-way bills by Investigating Officer.
4. Proposal for release of seized goods by the petitioner.
5. Dispute over adjustment of the amount paid at the time of seizure against released goods.
6. Decision on releasing the entire seized quantity of goods subject to bank guarantee.
7. Clarification on the Department's entitlement to continue investigation.

Analysis:

1. The petitioner filed a writ petition seeking the release of seized goods and books of account, challenging a letter from the respondents that required a specific deposit for release. The Court directed the Investigating Officer to verify the genuineness of suppliers and E-way bills provided by the petitioner.

2. The senior counsel for the petitioner informed the Court that eighteen suppliers were genuine, and a portion of the seized Areca Nuts was found to be tax paid. A proposal was made by the petitioner for the release of the remaining seized goods, suggesting a bank guarantee for the balance quantity after adjusting the amount previously paid at the time of seizure.

3. The respondents, through their counsel, disagreed with the proposal, stating that the amount paid earlier had already been adjusted against goods sold by the petitioner. Eventually, with mutual consent, the Court directed the respondents to release the entire seized quantity of goods upon the petitioner furnishing a bank guarantee, while reserving the right to investigate further and issue show cause notices if necessary.

4. The Court clarified that the Department retained the authority to continue the investigation despite the release of goods. With this clarification and direction, the writ petition and pending applications were disposed of, and the order was to be uploaded on the website and forwarded to the counsel via email promptly.

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