Provisional release of detained goods permitted on security, while factual tax dispute under GST remains open for separate examination.

Goods detained under the CGST Act were directed to be provisionally released on furnishing bank guarantee or solvency security, because the dispute involved factual questions requiring independent examination by the authorities. The Court treated the perishable nature of the goods and granted release against security equivalent to the invoice value, while stating that the interim release would not affect the merits of the departmental demand. The demand was to be examined separately after consideration of the parties' replies and documents, and the writ petitions were disposed of without adjudication on the merits.

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Issues: Whether the goods detained under section 130 of the Central Goods and Services Tax Act, 2017 should be released on furnishing bank guarantee or solvency security pending examination of the factual dispute.

Analysis: The dispute involved factual aspects requiring independent examination by the authorities. The goods were stated to be perishable, and the Court directed provisional release on furnishing security equivalent to the invoice value, while making it clear that such release would not affect the merits of the departmental demand, which would be examined separately after consideration of the parties' replies and documents.

Outcome: The goods were ordered to be released on furnishing bank guarantee or solvency security within the time granted, and the writ petitions were disposed of without adjudication on the merits of the demand.

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