Discharge of bank guarantee and bond granted where Customs remained inactive and goods were already cleared under interim arrangement.

Customs inaction on the petitioners' reply to the query memo, together with the absence of a return in the writ proceedings, supported grant of relief under Article 226. The Court expressly declined to express any view on the merits and proceeded on the basis of the existing interim arrangement under which the goods had already been cleared. On that footing, the petitioners were entitled to discharge of the bank guarantee and bond.

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Issues: Whether the petitioners were entitled to the relief of discharge of the bank guarantee and bond in proceedings under Article 226 of the Constitution of India.

Analysis: The Customs authorities did not act on the petitioners' reply to the query memo and no return was filed in the writ proceedings. The Court recorded that it was not expressing any opinion on the merits of the petitioners' claim, and proceeded on the basis that the relief sought could be granted in view of the Department's inaction and the existing interim arrangement under which the goods had already been cleared.

Conclusion: The petitioners were held entitled to the relief, and the bank guarantee and bond were directed to stand discharged.

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