TaxTMI 
TaxTMI 
2026 (3) TMI 571
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....der Dated 19.11.2025 Notice To R2 Is Dispensed With Sri Madanan R Pillai, CGC For R3). ORAL JUDGMENT (PER: HON'BLE MR. JUSTICE K. V. ARAVIND) Heard Sri Aditya Vikram Bhat, learned Additional Government Advocate for the appellants-Revenue and Sri Shreehari Kutsa, learned counsel for respondent No. 1. Sri Madanan R. Pillai, learned Central Government Counsel for respondent No. 3 in W.A. No. 1232/2025 and W.A. No. 1229/2025; Sri V. Shivareddy, learned Additional Government Advocate for respondent No. 2 in W.A. No. 1212/2025 and W.A. No. 1229/2025; and Sri Poojappa, learned Central Government Counsel for respondent No. 3 in W.A. No. 1212/2025. 2. These appeals are filed by the Revenue under Section 4 of the Karnataka High Court ....
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....tutory appeal under Section 107 of the Act. 3.3 Respondent No. 1, however, filed a writ petition before this Court challenging the order of detention passed under Section 129 of the Act and seeking a further direction for release of the goods. The learned Single Judge, by the impugned order, directed release of the goods and the vehicle, subject to deposit of 25% of the value of the goods and furnishing of a Bank Guarantee for the remaining 75%, quantified at Rs. 7,53,263/-. The said order is assailed in these appeals. 4. Sri Aditya Vikram Bhat, learned Additional Government Advocate appearing for the appellants-Revenue, submits that an order under Section 129 of the Act was initially passed detaining the goods and the vehicle in ques....
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....oods. 4.4 Learned AGA further submits that there is a substantial discrepancy between the valuation declared by the respondent and the valuation determined by the independent valuer appointed by the Revenue. It is his submission that the percentage of tax directed to be deposited and the Bank Guarantee ordered to be furnished under the impugned order are computed on the basis of the value declared by the respondent, which, according to the Revenue, does not reflect the correct value of the goods. 5. Sri Shreehari Kutsa, learned counsel appearing for respondent No. 1, submits that the order passed under Section 129 of the Act constitutes an independent cause of action and, therefore, the writ petition was rightly instituted. However, l....
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....le to the goods and the conveyance in the State Government, it is permissible to challenge only the order passed under Section 129 of the Act in a writ petition, and whether the learned Single Judge was justified in directing release of the detained and confiscated goods subject to payment of a specified percentage of the value of the goods. 7.2 Our answer to the above issues is in the 'negative' for the reasons below. 7.3 Section 129 of the Act empowers the concerned authorities to detain, seize and release goods and conveyances in transit. The provision enables the proper officer to issue a notice specifying the penalty payable and to pass an order for payment of such penalty. Section 129 also contemplates affording an oppor....