Seized Goods Release Ordered: Bond and Bank Guarantee Required Under CGST Rules for Conditional Return

HC resolved dispute over seized goods release, directing 1st respondent to release items upon complainant furnishing bond and bank guarantee for revised value. Court emphasized compliance with Central Goods and Services Tax Rules, rejecting initial release method and mandating proper procedural safeguards for goods' conditional release before Assembly Election process.

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Issues involved: Alleged violation of a Single Judge's order, release of seized goods before Assembly Election process, dispute over method of release (indemnity bond vs. bank guarantee), compliance with Central Goods and Services Tax Rules.

Violation of Single Judge's Order:
The complaint alleged violation of a Single Judge's order dated 26.07.2023 in W.P. No. 15636 of 2023, directing conditional release of seized articles post-elections. The complainant argued that the 1st respondent is bound by this order and must release the goods seized before the Assembly Election process, in line with the Election Code of Conduct.

Dispute over Method of Release:
The respondent-accused opposed the complaint, stating that releasing goods via indemnity bond is impractical and suggested a bank guarantee instead. Referring to Rule 140(1) of Central Goods and Services Tax Rules, 2017, which mandates release of seized goods with a bank guarantee, the respondent argued for compliance with this rule.

Compliance with Central Goods and Services Tax Rules:
After considering the arguments, the court noted the direction for release of goods but emphasized that as per State Policy and the provisions of the Central Goods and Services Tax Act, 2017, release is permissible only with a bond and bank guarantee for the worth of the goods. The court also highlighted discrepancies in the value of the goods as stated by the complainant and the respondent, ultimately directing the 1st respondent to release the goods upon the complainant furnishing a bond and bank guarantee for the revised, lesser sum without delay.

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