Recently, High Court gave an important judgment dated 29th October regarding to the seizure and release of goods and conveyance in transit in case of Smeara v/s State Tax Officer.

The competent authority detained the goods of the assesse under transport and thereafter passed an order demanding tax and penalty. The assesse filed an appeal against the order of demanding tax and penalty, which was still pending. The assesse further filed a writ petition praying for the release of goods pending disposal of the appeal.

High Court held that the pendency of an appeal cannot be the basis for a direction to release the goods without any security. High Court directed the Deputy Commissioner( Appeals) to consider and pass orders on the appeal within a period of three months from the date of receipt of a copy of this judgment, after hearing the assesses

The assesse may seek a release of goods by furnishing the necessary bank guarantee for the tax and penalty amounts confirmed against it.