Provisional release of imported gold jewellery allowed pending verification of certificate of origin and customs exemption claim.

Imported gold jewellery claimed exemption based on an Indonesian certificate of origin; the Bombay HC treated the immediate issue as whether continued detention was justified pending verification. It held that further detention was not warranted on the peculiar facts and permitted provisional release against an appropriate bond for the differential duty. The Court also left the Revenue free to verify the authenticity of the certificate of origin and complete assessment in accordance with law.

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Issues: Whether the imported goods were entitled to provisional release pending verification of the country of origin and assessment of the claimed customs duty exemption.

Analysis: The petition concerned import of gold jewellery for which the importer sought clearance under an exemption notification applicable to goods originating from Indonesia. The Court took note of the communication produced from the Indonesian provincial authority confirming issuance of the certificate of origin and considered the limited immediate controversy to be whether the goods should continue to be detained. In the peculiar facts, the Court held that further detention was not warranted and that provisional release could be permitted on furnishing an appropriate bond for the differential duty, while leaving open the Revenue's right to verify authenticity and complete assessment in accordance with law.

Conclusion: The goods were directed to be provisionally released on furnishing an appropriate bond for the differential duty, with verification and assessment to continue in accordance with law.

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