Release conditions for detained goods modified to strengthen revenue security while detention certificate direction was upheld.

Conditions for release of detained goods were modified to better protect revenue interest, with the release structure changed from part cash payment and security for the balance to payment of one-third in cash and a bank guarantee for the remaining two-thirds, applicable to both the total amount and the differential duty. The appellate authority was left free to decide any waiver of pre-deposit independently when the appeal is filed, without being influenced by the writ observations. The direction on issuance of the detention certificate was sustained in accordance with law, and prompt action by the parties was emphasised to prevent avoidable demurrage.

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Issues: Whether the conditions for release of the detained goods and the security for the differential duty required modification, and whether the detention certificate should be issued in accordance with law.

Analysis: The order permitting release of the goods on payment of a part of the amount in cash and securing the balance by bank guarantee was found to require modification so that the revenue interest was adequately protected. The release conditions were restructured to require payment of one-third of the amount in cash and a bank guarantee for the remaining two-thirds, both for the total amount and for the differential duty. The appellate authority was left to decide the waiver of deposit independently when the appeal is filed, uninfluenced by the observations in the writ petition. The direction regarding the detention certificate was maintained in accordance with law, and expeditious action by the appellants was emphasised to avoid avoidable demurrage.

Conclusion: The conditions for release of the goods were modified in favour of the Revenue by enhancing the security structure, while the detention certificate direction was sustained and the appeal was disposed of accordingly.

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