Confiscation under Section 130 bars Section 129 release mechanisms once title vests in the Government.

Once confiscation is ordered under Section 130 and title in the goods and conveyance vests in the Government under Section 130(5), the detention-and-release mechanism under Section 129 cannot be used to secure release on a percentage deposit and bank guarantee basis. The Karnataka HC held that the interim directions for release of the goods and vehicles were consistent with the confiscation regime and did not require modification. The writ appeals challenging those interim orders were dismissed, leaving the Single Judge's directions undisturbed.

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Issues: Whether the interim orders directing release of the goods and vehicles on deposit of 25% of the demand with bank guarantee for the balance required modification, and whether the writ appeals challenging those interim directions were liable to be allowed.

Analysis: The petitions before the Single Judge challenged confiscation orders passed under Section 130, whereas the comparator matters relied upon by the appellants involved detention and seizure proceedings and notice for confiscation under Section 129. The Court noted that Section 129 governs detention, seizure, and release of goods in transit, while Section 130 governs confiscation and penalty, and that once an order under Section 130 is passed, title to the goods and conveyance vests in the Government under Section 130(5). In that situation, the release mechanism under Section 129 is no longer available, and the matter is governed by the confiscation regime under Section 130. The Court accordingly found that the impugned interim orders were consistent with law and did not warrant modification.

Conclusion: The request for modification failed, and the interim orders were upheld.

Final Conclusion: The appeals were dismissed, leaving the interim directions of the Single Judge undisturbed.

Ratio Decidendi: Once confiscation is ordered under Section 130 and title vests in the Government, the detention-and-release mechanism under Section 129 cannot be invoked to secure release of the goods on a percentage deposit basis.

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