Petitioner must provide PD Bond & bank guarantee for 10% disputed amount. Respondents to release goods promptly.

The court modified the order, requiring the petitioner to provide a PD Bond and a bank guarantee for 10% of the disputed amount without prejudice, keeping the bank guarantee active until adjudication. The respondents were directed to release the goods within two days of compliance. The court clarified that its observations would not impact the final adjudication of the show cause notice, and the writ petition was disposed of without costs.

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Issues:
Challenge to order directing provisional release of goods with conditions.

Analysis:
The petitioner, engaged in import and distribution of newsprint, stored goods in customs bonded warehouse as per Exim Policy. Directorate of Revenue Intelligence (DRI) detained newsprint reels based on intelligence. Show cause notice under Customs Act, 1962 issued to petitioner for confiscation and penalty. Notice lacked duty amount, leading to writ petition for provisional release of goods. Petitioner argued against onerous condition of Bank Guarantee in impugned order.

The court noted Section 28(1)(a) of the Act requires duty amount in show cause notice. Absence of duty amount weakens notice, impacting provisional release conditions. Court found second condition for release unsustainable due to lack of duty amount in notice. First condition of PD Bond for 100% value of goods deemed valid. Petitioner agreed to furnish bank guarantee for 10% of disputed amount without prejudice.

Modified order required PD Bond and bank guarantee as specified, keeping bank guarantee active until adjudication. Respondents directed to release goods within two days of compliance. Court clarified observations wouldn't affect final adjudication of show cause notice. Writ petition disposed off without costs.

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