Release of detained perishable consignment: owner to deposit security for release of goods within seven days

Decision addresses release of a detained perishable consignment where documents of title accompanied the goods, establishing the appellant as owner; ownership not contested. The legal position applied treats possession of documents of title as determinative of ownership for release purposes, allowing the owner to secure claimed sums to obtain release. Considering perishability and the appellant's offer to secure liability, the operative direction requires deposit of Rs. 5,23,264 by way of bank draft or equivalent within seven days to effect release of the consignment. Appeal disposed accordingly.

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Issues: Whether seized perishable consignment (areca nuts) should be released to the claimant-appellant as owner on deposit of the penalty quantified in the notice under Section 129(3) of the CGST Act, 2017, and related interim relief measures.

Analysis: The Court examined documentary evidence accompanying the consignment, noting that documents of title were seized with the goods and that no other claimants challenged ownership. The Court considered the Circular dated December 31, 2018 concerning determination of ownership where invoice or specified documents accompany goods. The impugned notice under Section 129(3) assessed the liability of the owner at Rs. 5,23,264/-. The perishable nature of the goods and precedents concerning interim release on furnishing security were also considered, with distinction drawn where factual scenarios differ (for example, release of vehicle in other cases).

Conclusion: The appellant is to be treated as owner of the seized consignment for the purpose of interim relief; the appellant is directed to deposit Rs. 5,23,264/- within seven days by bank draft or equivalent instrument, upon which the respondent authorities shall release the seized consignment forthwith; the deposit shall abide the result of the pending writ petition.

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