Interim release of detained goods allowed on bank guarantee, while GST penalty proceedings were left open to continue.

Interim release of a detained truck and goods was directed on furnishing a specified bank guarantee, with no opinion expressed on the merits. The Court noted the dispute over alleged non-service of notice and accepted that the respondents could proceed under Section 129(3) of the CGST Act in accordance with law. The vehicle and goods were therefore released provisionally, while the tax authorities were left free to issue notice and continue penalty proceedings.

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Issues: Whether the petitioner was entitled to interim release of the detained truck and goods on furnishing a bank guarantee, and whether the respondents could issue notice for penalty under Section 129(3) of the Central Goods and Services Tax Act, 2017.

Analysis: The petition was taken up only on the question of interim relief. The order noted the contention regarding non-service of notice and the respondents' stand that they should be left free to proceed under Section 129(3). Without recording any opinion on merits, the Court directed release of the vehicle and goods upon furnishing the specified bank guarantee and permitted the respondents to issue notice and proceed in accordance with law.

Outcome: Interim relief was granted by directing release of the vehicle and goods on furnishing a bank guarantee, while leaving the respondents at liberty to proceed under law.

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