Court orders release of detained goods, allowing adjustment of deposited sum against differential duty

The court allowed the writ petition, directing the adjustment of the deposited sum against the estimated differential duty, resulting in the release of goods detained despite compliance with provisional release conditions. The court emphasized that the deposited amount could not be appropriated until adjudication post the show cause notice, ordering the release of goods within ten days if all conditions were fulfilled.

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Issues:
1. Detention of goods despite compliance with provisional release conditions.

Analysis:
The petitioner filed for provisional release of goods detained at various godowns, which was granted subject to specific conditions including payment of estimated differential duty, execution of a bond, furnishing a bank guarantee, and providing an undertaking regarding the goods. The petitioner had voluntarily deposited a sum towards the differential duty during the investigation. The Customs Department contended that the full estimated duty amount was yet to be paid, as the deposited sum was considered for past clearances. A show cause notice was issued demanding a higher duty amount and seeking appropriation of the deposited sum. The court disagreed with the Customs Department's stance, stating that until adjudication post the show cause notice, the deposited sum could not be appropriated. Therefore, the court held that the deposited sum should be adjusted against the estimated duty mentioned in the provisional release order, directing the release of goods within ten days, provided all other conditions were met.

In conclusion, the court allowed the writ petition to the extent that the deposited sum should be adjusted against the estimated differential duty, leading to the release of goods.

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