Provisional release of confiscated imported goods allowed subject to duty payment, security deposits, and WPC licence compliance.

Provisional release of confiscated imported capital goods was considered appropriate pending disposal of the appeal, where the dispute centred on the alleged absence of a WPC licence, alleged breach of customs exemption conditions, and the departmental claim for duty, fine and penalty. The later-produced WPC and import licences were treated as matters requiring examination by the Commissioner, while the installation-certificate condition for the remaining bills of entry was regarded as raising an arguable issue for final hearing. Release was made conditional on payment of duty, deposit towards redemption fine and penalty, and the Commissioner being satisfied on compliance with the WPC licence requirement.

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Issues: Whether provisional release of the confiscated imported goods pending final disposal of the appeal should be permitted, and on what conditions, in view of the disputed WPC licence, the alleged breach of import conditions, and the departmental demand for duty, fine, and penalty.

Analysis: The goods had been confiscated on the basis of alleged misdeclaration, absence of the required WPC licence, and breach of the conditions attached to the customs exemption notification. The later-produced WPC and import licences were noted, and the Court found that their validity and applicability required examination by the Commissioner. As regards the goods covered by the remaining bills of entry, the Court accepted that the installation-certificate condition under the exemption notification raised a arguable point that required further consideration at the final hearing. Since the appeal was pending and the goods were capital equipment relevant to discharge of export obligation, the Court considered provisional release appropriate, provided Revenue interests were protected by suitable monetary conditions.

Conclusion: Provisional release of the confiscated goods was directed, subject to payment of the duty and deposit of amounts toward redemption fine and penalty, and subject further to the Commissioner being satisfied about compliance with the WPC licence requirement.

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