Interim release of detained goods under GST sustained, with additional security required to protect revenue pending writ adjudication.

Interim relief in a GST detention dispute was sustained where goods and conveyance were ordered to be released on deposit, while the writ petition remained pending. The court balanced the taxpayer's challenge to the basis and quantum of the alleged liability against the revenue's need for protection, and held that the release direction did not require interference. To secure the authorities' interest pending adjudication, the respondent was also directed to furnish additional security in the form of a bank guarantee and a personal bond.

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Issues: Whether the interim order directing release of the detained goods and conveyance on deposit of Rs. 4 lakhs required interference, and whether additional security could be imposed while the writ petition remained pending.

Analysis: The appeal arose from an interim arrangement in a writ petition concerning action taken under Sections 129 and 130 of the Karnataka Goods and Services Tax Act, 2017. The detention-related liability assessed by the authorities was much higher than the amount directed to be deposited for release of the goods, but the respondent also contested the very basis of the liability and asserted that the goods value was substantially lower. Balancing the competing claims and the need to secure the revenue pending adjudication, the Court found it appropriate to sustain the earlier direction for release while protecting the interests of the authorities by requiring further security.

Conclusion: The interim order was upheld, and the respondent was directed to furnish a bank guarantee and a personal bond to secure release of the goods and conveyance pending the writ petition.

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