GST detention relief: conditional release on bank guarantee, with liberty to proceed for penalty notice under the law.

Under GST detention proceedings, the Court permitted conditional release of the detained goods and vehicle on furnishing a bank guarantee of the specified amount. It also left the department free to issue notice and proceed for penalty under section 129(3) of the CGST Act in accordance with law. The order was expressly made without expressing any opinion on the merits of the detention or the proposed penalty action, and the writ petition was disposed of on that limited basis.

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Issues: Whether the goods and vehicle detained under the GST law could be released on furnishing a bank guarantee, and whether the respondents could be permitted to issue notice for penalty under section 129(3) of the Central Goods and Services Tax Act, 2017.

Analysis: The order records the contention that the detention order quantified interest and penalty without prior notice, while the respondents sought liberty to issue notice under section 129(3). Without expressing any opinion on merits, the Court granted conditional release of the detained truck and material on furnishing a bank guarantee of the specified amount and reserved liberty to the department to proceed in accordance with law.

Outcome: The writ petition was disposed of with directions for conditional release of the detained goods and vehicle on furnishing bank guarantee, and with liberty to the respondents to issue notice and proceed for penalty in accordance with law.

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