Interim relief for perishable goods: release permitted on bank guarantee to secure assessed tax demand pending adjudication.

Interim relief granted to release detained areca nut consignment and conveyances pending adjudication of show-cause proceedings where seizure was under seizure-and-detention provisions; court applied principle that mere weighment or valuation differences, without prima facie fraud, forged documents, fake e-way bills, or registration defects, do not justify confiscation, and the perishable nature of goods weighs against continued detention. Operative effect: release on furnishing an adequate bank guarantee to cover the assessed short-paid tax demand, thereby protecting revenue while permitting goods and specified vehicles to be returned pending final adjudication.

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Issues: Whether interim relief should be granted for release of detained areca nut consignment and conveyances pending adjudication of show cause proceedings under Sections 129 and 130 of the Central Goods and Services Tax Act, 2017.

Analysis: The issue concerns interlocutory relief where seizure and detention were effected under Section 129 and show cause notice issued under Section 130. The petitioner disputes confiscation primarily on the ground of discrepancy in weighment and asserts that perishable goods and documentary compliance weigh against seizure and confiscation. Precedents relied upon indicate that mere difference of opinion on weighment or valuation, without allegations such as absence of documents, forged documents, forged e-way bills, fake registration, or complete mismatch of goods, ordinarily do not justify confiscation. The respondents assert procedural compliance with Sections 129, 130 and 131. Considering the perishable nature of the consignment and absence of prima facie allegations of fraud or fabricated documents, interim security in the form of a bank guarantee to cover the tax demand is an appropriate mechanism to protect revenue while permitting release pending adjudication.

Conclusion: Interim relief granted in favour of the petitioner: on furnishing an adequate bank guarantee to cover the assessed short-paid tax demand of Rs. 4,52,076.00, the detained consignment of areca nut and the specified vehicles are to be released forthwith. Notice issued and matter listed for further hearing.

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