Provisional release of imported goods conditioned on bank guarantees and retention of the deposited amount pending High Court proceedings.

Provisional release of imported goods was made conditional on the appellant furnishing bank guarantees, including an additional guarantee over and above the guarantee already directed by the Settlement Commission. The amount already deposited was to be retained if not yet sent onward, or re-deposited if returned, pending further proceedings before the High Court. The directions were based on the admitted amount and the provisionally worked-out differential customs duty on the consignment. The release was expressly made subject to further orders, and no final determination of the customs dispute was made.

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Issues: Whether the goods could be ordered to be provisionally released on the appellant furnishing bank guarantees and whether the deposited amount had to be retained or re-deposited pending further proceedings before the High Court.

Analysis: The order noted the Settlement Commission's direction regarding deposit of the admitted amount and provisional release on furnishing a bank guarantee, and also recorded the affidavit indicating the differential customs duty provisionally worked out on the consignment. On that basis, the Court directed that the deposited amount be retained if not already despatched, or re-deposited if returned, and required an additional bank guarantee of Rs. 2,20,000/- over and above the guarantee already directed by the Settlement Commission. Provisional release of the goods was made conditional upon furnishing the required guarantees and was expressly made subject to further orders of the High Court.

Outcome: Conditional provisional release and deposit directions were granted in favour of the appellant, without any final adjudication on the customs dispute.

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