High Court ordered release of goods and vehicle of petitioner, in-as-much-as the interest of revenue is secure.

Presently Civil Misc. Clarification Application has been filed by the petitioner disclosing that despite the fact that the petitioner had earlier deposited a sum of ₹ 2,89,039/- comprising ₹ 2,75,275/- towards penalty and 10% of the tax amount being ₹ 13,764/- towards tax payable and despite the fact that the petitioner has further deposited a sum of ₹ 27,528/- under the order dated 1.2.2021, neither the petitioner's goods nor the vehicle in question has been released.

The respondents are insisting on furnishing of security in the shape of a immovable property for the balance amount of tax (70%).

At the same time, it is seen that the petitioner had produced the e-way bill and the tax invoice at the time of detention itself. Thus the petitioner claims that he is the owner of the goods and therefore the penalty amount cannot exceed the amount of tax. As against that the petitioner has already deposited twice the amount of tax towards penalty.

Held by High Court

In such circumstances, it does appear that the interest of revenue is secure, in-as-much as sufficient amount has been deposited towards the penalty and also 30% of the tax amount is deposited in hard cash. At this stage, learned counsel for the petitioner states that the petitioner is willing to deposit the balance 70% of the amount of tax in cash. Accordingly, the petitioner is permitted to deposit 70% of the demand of tax payable on the goods as a further condition to obtain the release of the vehicle and goods.

Civil Misc. Clarification Application No. 3 of 2021 is disposed of with the observation, subject to the petitioner depositing 70% of the amount of tax, the goods and the vehicle shall be released forthwith.

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