Sreekrishna Traders v. State of Karnataka & Others

Background of the Case

In the present case, the petitioners approached the Karnataka High Court seeking release of goods and vehicles that had been detained by the GST authorities and subsequently confiscated under Section 130 of the CGST/KGST Act. The petitioners also sought a stay on the confiscation orders issued in Form GST MOV-11 and the consequential demand orders reflected in Form DRC-07.

Earlier, while considering the writ petitions, the learned Single Judge had granted interim relief by directing provisional release of the detained goods and vehicles subject to the petitioners depositing 25% of the demand raised in Form DRC-07 and furnishing a bank guarantee for the remaining 75% amount. This interim arrangement was based on an earlier Division Bench decision dealing with similar matters.