Provisional release of imported goods allowed on reduced differential duty pending customs adjudication of concessional duty eligibility.

Prima facie entitlement to a concessional customs duty benefit can justify provisional release of imported consignments pending adjudication, particularly where the goods are perishable. The petitioner supported its claim with a declaration of origin and confirmation that certificates of origin had been issued, which was sufficient to discharge the initial burden for provisional release. The final eligibility for the concession was left to the customs authorities for adjudication, but the release condition requiring payment of 35% of the differential duty was modified to 20% of the differential duty, with the remaining conditions sustained.

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Issues: Whether the petitioner was entitled to provisional release of the imported consignments pending adjudication on eligibility to the concessional duty benefit, and whether the condition requiring payment of 35% of the differential duty could be modified.

Analysis: The petitioner produced a declaration of origin and a communication from the High Commission confirming issuance of certificates of origin. On that basis, the petitioner was held to have discharged the prima facie burden of showing entitlement to the concessional rate claimed under the notification. The dispute as to final eligibility was left for adjudication by the customs authorities, but pending such adjudication the goods were considered fit for provisional release, especially since they were perishable. In balancing revenue protection with the circumstances of the case, the condition demanding 35% of the differential duty was modified to 20% of the differential duty, while the remaining conditions for release were sustained.

Conclusion: The petitioner was entitled to provisional release of the goods on payment of 20% of the differential duty and compliance with the remaining stipulated conditions, with the merits of the exemption claim left open for adjudication.

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