Bill of Entry filing required before customs release; interim order releasing imported goods without compliance was set aside.

Filing of a Bill of Entry was treated as a prerequisite for customs appraisal, and an interim release of imported goods without that filing was held unsustainable. The SC found that the High Court had directed release despite the absence of Bills of Entry and had not examined the underlying merits or allegations. As the release order could not stand without compliance with the filing requirement, the ancillary direction permitting encashment of the bank guarantee also fell. The interim order was set aside, and the Department was permitted to encash the bank guarantee.

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Issues: Whether the High Court was justified in directing interim release of imported goods without filing of Bills of Entry.

Analysis: Filing of a Bill of Entry is a prerequisite for customs appraisal. The impugned interim order released the goods despite the absence of Bills of Entry, and the matter was directed not to be examined on the underlying merits or allegations. In the circumstances, the release of goods without compliance with the filing requirement was held to be unsustainable; the ancillary direction permitting encashment of the bank guarantee followed from the release of the goods.

Conclusion: The interim order of the High Court was set aside, and the Department was permitted to encash the bank guarantee.

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