1. The petition has been heard by way of video conferencing.

2. Present writ petition has been filed seeking directions to the respondents to release the seized goods along with the books of account. Petitioner also challenges the letter dated 19th July, 2021 issued by Respondents to the extent it requires the Petitioner to deposit a sum of ₹ 1,32,51,87,300/- or ₹ 6,62,59,365/- along with penalty of ₹ 99,38,904/- as a condition for release of goods of the Petitioner.

3. On 6th August, 2021, while issuing notice, this Court had directed Mr.Manoj Agarwal authorized, representative of the petitioner, to appear within three working days before the Investigating Officer so that the genuineness of the suppliers and the E-way bills produced by the petitioner could be verified.

4. Today, learned senior counsel for the Petitioner states that eighteen suppliers have been found to be genuine and a quantity of 17.12 lakhs kgs or Areca Nuts belonging to the petitioner have been found to be tax paid.

5. On 7th October, 2021, learned senior counsel for petitioner had made a proposal to the respondents for release of seized Areca Nuts lying in five godowns totalling to 48.36 lakhs kgs. In the said e-mail, the petitioner had proposed to give a bank guarantee for the balance seized quantity (48.36 lakhs kgs minus 17.12 lakhs kgs) after adjusting ₹ 1.5 crores paid by the Petitioner at the time of seizure.

6. However, learned counsel for respondents, on instructions, states that though the respondents are willing to release the seized goods on receipt of a bank guarantee, yet the amount of ₹ 1.5 crores cannot be adjusted against the seized goods, as the same has been adjusted by the respondents against the goods which had already been sold by the Petitioner.

7. Consequently, with the consent of the parties, the Respondents are directed to release the entire seized quantity of 48.36 lakhs kgs of Areca Nuts, subject to the Petitioner furnishing a bank guarantee without prejudice to its rights for 31.24 lakhs kgs (being 48.36 lakhs kgs – 17.12 lakhs kgs) @ ₹ 274/- per kg.

8. It is clarified that the Department will be entitled to carry on investigation and issue show cause notice, if the facts of the case so warrant.

9. With the aforesaid clarification and direction, the present writ petition along with pending applications stands disposed of.

10. The order be uploaded on the website forthwith. Copy of the order be also forwarded to the learned counsel through e-mail.