Tribunal Orders Detailed Release of Seized Goods; Commissioner to Comply with Customs Act Section 110A in Two Weeks.

The Tribunal set aside the communication from the Deputy Commissioner of Customs regarding the provisional release of seized goods, citing the lack of a reasoned order. It directed the Commissioner to issue a detailed release order within two weeks, ensuring compliance with Section 110A of the Customs Act. The appeal was allowed, mandating the provisional release of goods pending adjudication, with an injunction against disposing of the goods for eight weeks to prevent deterioration, thus safeguarding the appellant's interests while adhering to legal requirements.

---

---

Issues involved:
1. Provisional release of seized goods u/s 110A of the Customs Act, 1962.

Summary:
The appeal was against a communication by the Deputy Commissioner of Customs, ICD Sanathnagar, Hyderabad, informing the appellant about the provisional release of goods subject to certain conditions. The appellant had imported goods for home consumption, which were seized under Panchnama. The Deputy Commissioner ordered the submission of a provisional duty bond and bank guarantee for customs duty and adjudication liabilities. The appellant challenged the non-speaking order, as the reasons for the release were not provided.

The appellant's counsel argued that the Adjudicating Authority can release goods pending adjudication by taking a bond with security and conditions. However, in this case, the order lacked reasons for the release decision. Section 110A of the Customs Act allows for the provisional release of goods pending final order, with the Adjudicating Authority required to make a decision and inform the owner of the reasons for release.

The Deputy Commissioner only informed the appellant about the provisional release order by the Commissioner without providing the order itself. Referring to a similar case, the Tribunal emphasized that the order for provisional release must show application of mind and reasons. As the goods were for home consumption and at risk of deterioration, the Commissioner was directed to pass a release order within two weeks and to refrain from disposing of the seized goods for eight weeks.

In conclusion, the communication of November 20, 2020, was set aside, and the appeal was allowed for the provisional release of goods pending adjudication, ensuring proper compliance with the provisions of the Customs Act.

---