Goods seized during interception of goods in transit are to be released on payment of bank guarantee for the value of goods as directed by the Revenue Authorities.

1. The petitioner, a firm, purchased some tiles in Gujarat and was transporting them. The respondent authority intercepted the vehicle and issued Exts.P4 to P4(d)— demanding payment of tax/penalty. Questioning the respondent's action, the petitioner has filed this writ petition.

2. Heard the learned counsel for the petitioner as also the learned Government Pleader appearing for the respondents.

3. Indeed, the petitioner has an efficacious alternative remedy under Section 107 of the Central Goods and Service Tax Act. Nevertheless, the petitioner has agreed to provide the Bank guarantee as mandated under Rule 140 of the CGST Rules and to have the goods released, subject to the departmental proceedings now initiated through Ext.P4 series.

4. In response to the submissions made by the learned counsel for the petitioner, the learned Government Pleader has submitted that if the petitioner is willing to provide the Bank guarantee for the value of the goods as estimated in Ext.P4, the respondent has no objection to release the goods. She has also submitted that the Department can as well proceed under Ext.P4 and conclude the proceedings.

5. Under these circumstances, I hold that the respondent will release the petitioner's goods on its providing the Bank guarantee for the value of the goods as mentioned in Ext.P4. Thereafter, the authorities may proceed further, in accordance with law.

Sd/-

DAMA SESHADRI NAIDU

JUDGE