Interim release of seized vehicle granted subject to undertaking, non-alienation, inventory and bond pending misdeclaration dispute

Pending adjudication of an alleged misdeclaration of engine capacity, the Court considered release of the vehicle appropriate in the interest of justice because the clearance order had already been passed on payment of duty. Interim release was granted subject to safeguards protecting the Department's interests, including an undertaking to produce the vehicle when required, a promise not to alienate it without clearance, an inventory of spare parts, and a personal bond for the differential duty amount. The merits of the misdeclaration allegation were left open for future adjudication.

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Issues: Whether the vehicle should be released pending adjudication of the alleged misdeclaration and on what conditions such release could be ordered.

Analysis: The impugned demand proceeded on an allegation that the vehicle had been mis-described as to engine capacity, but that question had not yet been adjudicated. The order of clearance had already been passed on payment of duty, and the Court found it appropriate in the interest of justice to stay implementation of the impugned order while securing the Department's interests through an undertaking to produce the vehicle when called for, an undertaking not to alienate it without clearance, inventory of spare parts, and a personal bond for the differential duty amount.

Outcome: Interim relief for release of the vehicle was granted subject to the stated conditions, leaving the merits of the alleged misdeclaration open for future adjudication.

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