Case Details: Venkateshwara Traders vs. Union of India - [2026] 182 taxmann.com 889 (Rajasthan)
Judiciary and Counsel Details
- Sanjeev Prakash Sharma, ACTG. CJ. & Mrs. Sangeeta Sharma, J.
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Raaghul & Niraj Kumar Yadav, Advs. for the Petitioner.
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Vigyan Shah, AAG, Rohit Tiwari, Sankalp Vijay, AAAGs, Priyam Agarwal, Deepak Mittal, Advs. & Praveen Singh Rajawat, Sr. CGPC for the Respondent.
Facts of the Case
The petitioner traded arecanuts against a purchase order from a registered dealer and issued a tax invoice with IGST charged. During transit, the consignment was intercepted and confiscation proceedings were initiated under Section 129 of the CGST Act, confirming confiscation and imposing penalty and fine. The petitioner filed written replies but no personal appearance was recorded. The confiscation order was challenged through writ petitions, contending that the goods were perishable and their continued detention would cause irreversible loss. The matter was accordingly placed before the High Court.
High Court Held
The High Court held that the arecanuts fell within the definition of perishable goods and, therefore, their detention required special consideration. The Court directed release of the goods on furnishing a bank guarantee or solvency security equal to the invoice value, observing that the dispute involved factual examination and interim release would not prejudice the adjudication of the confiscation proceedings. The Court clarified that the release was without prejudice to the merits of the demand, which would be independently examined by the authorities during adjudication under Section 129 read with Section 130 of the CGST Act. The writ petitions were disposed accordingly.
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