Detention of vehicle and perishable Arecanuts: release vehicle on payment; sell goods and retain proceeds pending challenge.

Detention of a commercial vehicle carrying 17,760 kg of arecanuts was addressed by directing release of the vehicle on payment of Rs.100,000 to respondent authorities, with release within three days of payment. Because the goods are perishable, they were ordered to be sold at the best realisable price within 15 days of service of the order; sale proceeds must be retained in a separate account pending resolution of the writ petition. The consignor may participate in the auction proceedings. The directive balances preservation of property value with protection of contested revenue interests.

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Issues: (i) Whether the detained vehicle may be released during the pendency of the writ petition; (ii) Whether the seized perishable goods may be dealt with pending adjudication and the manner of dealing with sale proceeds.

Issue (i): Whether the detained vehicle should be released and on what conditions.

Analysis: The Court considered the risk of deterioration of the detained vehicle if continued in custody and balanced that risk against the State's enforcement interest under section 129 provisions. The Court directed a conditional release mechanism requiring a monetary payment to the appropriate authority, specifying time for release post payment.

Conclusion: The vehicle is to be released to the appellant on payment of Rs.1,00,000/- to the appropriate authority and forthwith released within three days of payment.

Issue (ii): Whether the seized perishable goods (Areca-nuts) should be retained, destroyed, or sold pending the writ petition and how the sale proceeds should be treated.

Analysis: The Court noted the perishable nature and limited shelf-life of the Areca-nuts and the practical infeasibility of preserving them in custody. The Court directed that the department sell the goods at the best possible realisable price within a fixed timeframe, permit participation by the appellant in auction proceedings, and retain the sale proceeds in a separate account until final adjudication of the writ petition.

Conclusion: The department is directed to sell the Areca-nuts within 15 days from receipt of the server copy of the order, retain the sale proceeds in a separate account pending the writ petition, and allow the appellant to participate in the sale proceedings.

Final Conclusion: The Court granted interim reliefs that conditionally favour the appellant by ordering release of the vehicle on payment while authorising the sale of perishable seized goods with proceeds preserved pending final adjudication, and permitted the filing of an application to bring subsequent events on record.

Ratio Decidendi: Where detained property risks irreversible deterioration, a court may order conditional release of vehicles on deposit and permit sale of perishable seized goods with sale proceeds retained in a separate account pending adjudication under section 129 of the GST Act.

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