Interim release of perishable imported food additives allowed on bank guarantee securing redemption fine

Imported food additives with a limited shelf life and fit for human consumption may be released pending appeal when the revenue is secured by a bank guarantee for the quantified redemption fine. The Court treated delay as materially affecting the utility of the goods and balanced that against the respondents' interest by requiring security before release. Interim release was therefore directed on furnishing a bank guarantee for the amount fixed as redemption fine.

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Issues: Whether the confiscated imported food additive, having limited shelf life and being fit for human consumption, should be released pending appeal on the appellant furnishing a bank guarantee for the redemption fine.

Analysis: The imported goods were food additives with a limited shelf life, and the Court accepted that delay would materially affect their utility. The goods were also found fit for human consumption. In these circumstances, and since the redemption fine had been quantified, the Court considered it appropriate to secure the revenue by directing the appellant to furnish a bank guarantee for the amount fixed as redemption fine before release of the goods. The direction ensured that the pendency of the appeal would not render the goods useless while protecting the interests of the respondents.

Conclusion: The goods were ordered to be released on the appellant furnishing a bank guarantee of Rs. 30 lakhs towards redemption fine to the satisfaction of the first respondent, and the release was to follow within two weeks thereafter.

Ratio Decidendi: Where imported goods are perishable or have a limited shelf life and are fit for consumption, interim release may be directed pending appeal on adequate security such as a bank guarantee for the quantified redemption fine.

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