Interim release of detained goods on bank guarantee granted under GST detention rules, with challenge to authority kept open

The writ petition under Article 226 challenged detention orders under Section 129 of the Uttar Pradesh GST Act, 2017 and questioned the competence of the issuing authority. Pending further hearing and exchange of affidavits, the petitioner sought release of the detained goods by offering security. The Court directed interim release of the goods on furnishing of a bank guarantee in terms of Rule 140(1) of the Uttar Pradesh GST Rules, 2017, while leaving the merits of the statutory challenge open for later consideration.

---

---

Issues: Whether the petitioner was entitled to interim release of the detained goods on furnishing of bank guarantee; and whether the writ petition raised a challenge to the authority exercised under the GST detention and adjudication framework.

Analysis: The petition was filed under Article 226 of the Constitution of India challenging orders passed under Section 129 of the Uttar Pradesh Goods and Services Tax Act, 2017 and also questioning the competence of the authority to pass the impugned order. The matter was not finally adjudicated at that stage, as affidavits were directed to be exchanged and the case was kept pending for further hearing. Pending such consideration, the petitioner expressed readiness to furnish security for release of the goods. The Court directed release of the goods upon furnishing of bank guarantee in accordance with Rule 140(1) of the Uttar Pradesh Goods and Services Tax Rules, 2017.

Conclusion: Interim release of the goods was directed in favour of the petitioner upon furnishing bank guarantee, while the merits of the challenge remained open for future consideration.

---