The top court said that confiscation of animals can only happen after the conviction of a person under the PCA Act and it cannot be done during the pendency of trial.
The accused, identified as Gurjinder Singh, has been booked under relevant sections of the Prevention of Cruelty to Animals Act and the Indian Penal Code (IPC).
With this ruling, during Bakrid, which is observed in the first week of September, cattle can be sacrificed without any legal ramifications.
Union Environment Minister Harsh Vardhan said the new rules are very "specific" and aim to regulate animal markets and sale of cattle.
Vijayan's comments came soon after the Centre banned the sale and purchase of cattle from animal markets for slaughter through an environment ministry notification.