Provisional release of imported goods pending adjudication, with merits of seizure and classification left open for determination.

Imported paper consignments treated by the Revenue as prohibited stock lot imports were considered in the context of a request for release pending adjudication. The court stated that the proper enquiry at that stage was only whether a prima facie case existed for provisional release, and that it should not finally decide the classification, seizure, or detention merits before adjudication commenced. The matter was therefore confined to release subject to an undertaking by the importer to participate in adjudication, while the Department retained the right to issue notice and complete proceedings in accordance with law.

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Issues: Whether the imported consignments were liable to be released pending adjudication, and whether the writ court could finally pronounce on the merits of the seizure and detention when the only effective relief sought was release of the goods.

Analysis: The dispute related to imported paper consignments which the Revenue treated as a prohibited stock lot import, while the importer asserted that the goods were classifiable as freely importable paper under the relevant ITC(HS) heading. The Court held that the writ court had gone beyond the scope of the relief sought by virtually deciding the merits of the seizure and detention, when the proper enquiry at that stage was only whether the importer had made out a prima facie case for release pending adjudication. Since adjudication had not yet commenced, the Court declined to express any opinion on the classification controversy and confined the matter to provisional release, while preserving the Department's right to proceed with show cause and adjudication.

Conclusion: The imported goods were ordered to be released subject to the importer's undertaking to participate in adjudication, and the Revenue was permitted to issue show cause notice and complete adjudication in accordance with law.

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