Prima facie interim release of detained goods granted conditionally on deposit pending stay proceedings.

A prima facie case was found for limited interim relief against detention of goods pending the stay application, where the demand related to the period before January 2002 and the applicant contended that no prior notice had been issued. The Tribunal referred to Section 11AA, Section 11AB of the Central Excise Act, 1944, and Rules 3 and 4 of the Customs (Attachment of Property of Defaulters for Recovery of Government Dues) Rules, 1995. Interim release was made conditional on a deposit, and on compliance the detention order was to be revoked and the goods released, subject to further orders in the stay matter.

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Issues: Whether interim release of detained goods could be granted in a stay application on a prima facie view, subject to a deposit condition, in relation to a duty demand for the period prior to January 2002.

Analysis: The order notes the pre-January 2002 period of demand and refers to Section 11AA and Section 11AB of the Central Excise Act, 1944, along with Rules 3 and 4 of the Customs (Attachment of Property of Defaulters for Recovery of Government Dues) Rules, 1995. In view of the contention that no prior notice had been issued before detention, the Tribunal found a prima facie case for granting limited interim relief pending hearing of the stay application.

Outcome: The applicant was directed to deposit Rs. 8,00,000, and on such deposit the detention order was to stand revoked and the goods released, subject to the further order in the stay application.

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