Court Orders Provisional Release of Goods Under Customs Act with Bank Guarantee

The Court directed the respondent authority to release the goods provisionally under Section 110A of the Customs Act, 1962, upon the petitioner providing a bank guarantee of Rs.56 lakhs. The release was to occur within 48 hours, considering the perishable nature of the goods and the legal validity of the Appellate Authority's order, while emphasizing the relevance of the 2004 circular over the 2017 circular cited by the Customs authority.

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Issues:
Release of goods provisionally under Section 110A of the Customs Act, 1962 based on conflicting circulars and orders.

Analysis:
The petitioner sought the release of goods provisionally under Section 110A of the Customs Act, 1962, relying on an order of the Appellate Authority and a Division Bench decision from 2005. The respondent Customs authority opposed, citing a circular from 2017. The Court noted that the Appellate Authority's order had not been stayed or set aside by a higher forum, making it legally valid. Additionally, the respondent's reliance on the 2017 circular was deemed inapplicable as it pertained to prohibited goods, not the restricted goods in question.

The Court highlighted that the 2017 circular did not supersede the 2004 circular, which allowed for provisional clearance of disputed goods to prevent congestion at ports. The Division Bench precedent emphasized that even partial prohibition does not bar provisional release. The petitioner also argued that the goods were perishable spirits, necessitating timely release to prevent spoilage.

Consequently, the Court disposed of the writ petition by directing the respondent authority to release the goods upon the petitioner providing a bank guarantee of Rs.56 lakhs, determined as a redemption fine. The goods were to be released within 48 hours of furnishing the guarantee, subject to departmental satisfaction and statutory compliance. The Court's decision was based on the legal validity of the Appellate Authority's order, the relevance of the 2004 circular, and the perishable nature of the goods, ensuring a balanced approach to the conflicting circulars and orders involved.

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