Interim GST relief on part-payment and security leads to stay of order and release of seized goods and vehicle

Interim relief was granted in a GST detention matter on the taxpayer's undertaking to deposit 50% of the assessed amount, after adjusting any amount already paid, within four weeks and to furnish security other than cash or bank guarantee for the balance to the satisfaction of the competent authority. On compliance, the impugned appellate order was stayed and the seized goods and vehicle were directed to be released. The operative effect is that part-payment plus acceptable security can justify interim protection pending further proceedings where the taxpayer complies with the stipulated conditions.

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Issues: Whether interim protection could be granted against the impugned tax and penalty order on the petitioner furnishing part-payment and security, and whether the seized goods and vehicle could be released on compliance.

Analysis: The order records the petitioner's undertaking to deposit 50% of the assessed amount under section 129(1)(a) of the Integrated Goods and Services Tax Act, 2017, after adjusting any amount already deposited, within four weeks. For the remaining 50%, the petitioner is to furnish security other than cash or bank guarantee to the satisfaction of the competent authority. The impugned appellate order under section 129(3) of the Central Goods and Services Tax Act, 2017 is directed to remain stayed upon compliance, and release of the seized goods and vehicle is also ordered in that event.

Conclusion: Interim relief was granted subject to deposit of 50% of the assessed amount and furnishing of security for the balance, with stay of the impugned order and release of the seized goods and vehicle on compliance.

Ratio Decidendi: Where a taxpayer undertakes part-payment and furnishes adequate security, interim stay and consequential release of seized goods and vehicles may be granted pending further proceedings.

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