Detained export goods may be released on bond and cooperation when customs inquiry material has been supplied.

Detained export consignments of handmade, customised silk carpets were found not to warrant continued withholding once the exporters had filed shipping bills, supplied the information sought, and responded to summons under the Customs Act. Release was directed on furnishing an appropriate bond, with a requirement to cooperate in the customs inquiry. The Court also recognised that if export was not pursued, the goods should not remain detained on that account alone, and directed release for domestic sale in that event.

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Issues: (i) whether the detained export consignments of silk carpets were liable to continue to be withheld pending customs inquiry, and (ii) whether an alternate direction could be issued for release of the goods for domestic sale if the petitioners were not inclined to export them.

Issue (i): whether the detained export consignments of silk carpets were liable to continue to be withheld pending customs inquiry

Analysis: The petitioners had already furnished shipping bills and supporting export particulars, had responded to the summons under Section 108 of the Customs Act, 1962, and had supplied the information called for by the customs authorities. The goods were handmade and customised carpets meant for export, and continued detention was found unjustified. The Court also recorded that the petitioners were willing to cooperate in the investigation and furnish an appropriate bond.

Conclusion: The consignments were directed to be released upon furnishing of an appropriate bond and the petitioners were required to cooperate in the investigation.

Issue (ii): whether an alternate direction could be issued for release of the goods for domestic sale if the petitioners were not inclined to export them

Analysis: The Court accepted the alternative possibility that, if export was not pursued, the goods should not remain detained merely on that account. A consequential direction was therefore warranted to avoid prejudice to the petitioners.

Conclusion: The respondents were directed to release the goods for sale in the domestic market if the petitioners were not interested in exporting them.

Final Conclusion: The petitions were allowed by granting relief against continued detention of the export consignments, subject to furnishing of bond and cooperation in the customs inquiry, with an alternative direction for domestic release if export was not pursued.

Ratio Decidendi: Detained export goods should not be kept under restraint once the exporter has supplied the requisitioned information and undertakes to cooperate, and release may be ordered on furnishing of security where continued detention is not justified.

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