Provisional release conditions must be reasonable and proportionate; a price list alone cannot justify onerous customs safeguards.

Provisional release of detained and seized auto parts under the Customs Act must be conditioned on measures that are reasonable and proportionate to the facts. Where the available material did not sufficiently support detention and the declared value had already been enhanced during assessment, the Tribunal treated a price list alone as inadequate to reject the declared value or justify onerous release conditions. The stringent requirements of a full-value bond and heavy bank guarantees were therefore reduced, and release was permitted on a bond for the assessed value supported by a bank guarantee of Rs. 2 lakhs.

---

---

Issues: Whether the conditions imposed for provisional release of the detained and seized auto parts were excessive and required modification.

Analysis: The goods had been detained under Section 110 of the Customs Act, 1962 and provisional release was ordered under Section 110A of the Customs Act, 1962 on stringent conditions, including a bond for the full value and substantial bank guarantees. The Tribunal noted that the import documents showed enhancement of declared value at the time of assessment, that the goods were described as retail sale price goods, and that the seizure and detention appeared to lack a sufficient basis on the material then available. It further held that a price list by itself could not be treated as the sole basis for rejecting the declared value, and that the conditions imposed for release were harsh in the given facts.

Conclusion: The conditions for provisional release were modified and reduced, and the goods were directed to be released on execution of a bond for the assessed value backed by a bank guarantee of Rs. 2 lakhs.

Final Conclusion: The appeal succeeded to the extent of securing provisional release of the goods on substantially lighter conditions.

Ratio Decidendi: Provisional release conditions under the Customs Act must be reasonable and proportionate, and a price list alone cannot justify rejecting declared value or imposing unduly onerous release conditions.

---