Provisional release security for seized export goods was reduced after the demanded bank guarantee was found excessive.

Security for provisional release of seized export goods was held capable of relaxation on the facts, where the initially demanded bank guarantee was considered excessive in light of a comparable release arrangement in another case and the appellant's reduced offer. The requirement was modified, and provisional release was directed on execution of a bond for the estimated value supported by a lower bank guarantee.

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Issues: Whether the security demanded for provisional release of seized export goods was excessive and required modification.

Analysis: The goods were sought to be provisionally released on execution of a bond for the estimated value together with a bank guarantee equal to 50% of that value. A similar provisional release arrangement in another case involving comparable goods was taken into account. The requirement of security was found to be capable of relaxation in the facts of the case, and the appellant's offer of a bond for the estimated value with a reduced bank guarantee was considered reasonable.

Conclusion: The demand was modified and the goods were directed to be provisionally released on execution of a bond of Rs. 64,26,000/- supported by a bank guarantee of Rs. 10,00,000/-.

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