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        Case ID :

        2019 (3) TMI 625 - HC - Customs

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        Provisional release of detained imported machinery allowed on bond and security, while customs adjudication may continue. Detained consignments of used digital multifunction printing and copying machines could be released provisionally under the customs scheme for seized ...
                      Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.

                          Provisional release of detained imported machinery allowed on bond and security, while customs adjudication may continue.

                          Detained consignments of used digital multifunction printing and copying machines could be released provisionally under the customs scheme for seized goods, which allows release on bond and security pending adjudication. The court applied that mechanism because the importers had not challenged the foreign trade policy restriction governing the goods, and distinguished authorities where policy-based challenges were pending. Provisional release was ordered on furnishing a bond for 90% of the enhanced valuation and security for the remaining 10%, while customs authorities retained liberty to complete assessment and adjudication in accordance with law.




                          Issues: Whether the detained consignments of used digital multifunction print and copying machines were liable to be released pending adjudication, and on what conditions, where the importers had not challenged the foreign trade policy restrictions.

                          Analysis: The scope of the writ petitions was confined to a direction for release of the consignments. The relevant statutory mechanism for provisional release permits goods seized pending adjudication to be released on bond and security. The Court applied that mechanism to the facts, noting that the governing position was the one recognised in the Supreme Court's order permitting release of similar consignments where the policy itself had not been challenged. The Court distinguished cases where the foreign trade policy was under challenge and held that those directions would not govern the present petitioners. It also left the customs authorities free to proceed with assessment and adjudication in accordance with law.

                          Conclusion: The consignments were directed to be released provisionally upon the petitioner furnishing a bond for 90% of the enhanced valuation and security for the remaining 10% within one week.

                          Final Conclusion: The writ petitions succeeded to the extent of provisional release of the detained consignments on stipulated security conditions, while the authorities retained liberty to complete assessment and adjudication under law.

                          Ratio Decidendi: Where imported goods are detained pending adjudication and the importer has not challenged the governing policy restriction, provisional release may be ordered on bond and security under the customs statutory scheme, while preserving the authority's right to adjudicate the merits.


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