Bank guarantee substitution for seized conveyance release permitted with equivalent surety, preserving appellate determination of seizure issues.

Release of a bank guarantee furnished for interim release of a seized conveyance may be permitted during a pending statutory appeal where the assessee has deposited the required portion of tax and penalty. The guarantee can be substituted with equivalent surety acceptable to the authority, while the appellate authority retains full power to determine the seizure-related issues. The substitution preserves security for the disputed liability without retaining the original bank guarantee, and the final position regarding the seized conveyance remains subject to the appeal's outcome.

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Issues: Whether the bank guarantee furnished for release of the seized conveyance should be released during pendency of the statutory appeal.

Analysis: The conveyance had been released under an interim order upon furnishing a bank guarantee, and the assessee had preferred an appeal against the order under Section 129 and deposited 25% of the tax and penalty. In the circumstances, release of the bank guarantee upon substitution by equivalent surety was considered appropriate, while preserving the appellate authority's determination of the seizure-related issues.

Conclusion: The bank guarantee shall be released upon the assessee furnishing surety for an equivalent amount to the satisfaction of the authority; the final determination concerning the seized conveyance remains subject to the appellate outcome.

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