Provisional release under s.110A Customs Act: bank guarantee raised from Rs.10 crore to Rs.15 crore; other conditions remain operative

SC modified HC direction on provisional release under s.110A Customs Act: the bank guarantee previously fixed at Rs.10 crores is increased to Rs.15 crores; all other incidental conditions imposed by the HC remain in force. The special leave petition is disposed of.

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Issues:
Provisional release of goods under Section 110A of the Customs Act, 1962. Enhancement of bank guarantee from Rs. 10 crores to Rs. 15 crores.

Analysis:
The Supreme Court addressed the issue arising from an order of the Delhi High Court regarding the provisional release of goods under Section 110A of the Customs Act, 1962. The Tribunal had set aside the competent authority's decision and imposed conditions. The High Court, in its order, directed provisional release upon the respondent furnishing a bank guarantee of Rs. 10 crores. During the hearing, both parties were represented by their respective counsels, and the Court considered the submissions made by them.

The Court, after due consideration, decided to enhance the bank guarantee from Rs. 10 crores to Rs. 15 crores. The respondent's senior counsel had no objection to this enhancement. Therefore, the Court modified the High Court's order accordingly, increasing the bank guarantee amount. It was clarified that the other conditions imposed by the High Court would remain in force despite this modification.

Consequently, the Special Leave Petition was disposed of by the Court, and any pending applications were also disposed of as a result of this judgment. The decision to enhance the bank guarantee amount was a crucial aspect of the judgment, ensuring compliance with the conditions set by the Court for the provisional release of the goods under the Customs Act.

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