Provisional release of detained imported goods ordered subject to payment of customs duty and furnishing of bank guarantee.

The HC directed provisional release of detained imported goods after addressing the customs authority's inaction on the petitioner's request. The Commissioner of Customs was directed to intimate the additional customs duty payable within the stipulated time, and the petitioner was required to pay that duty within seven days of intimation and furnish a bank guarantee for 10% of the total price of the imported goods. On compliance with those conditions, the customs authority was directed to release the goods within ten days. The directions were expressly without prejudice to the parties' rights in any subsequent proceedings.

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Issues: Whether the petitioner was entitled to provisional release of the detained xerox machine and whether the customs authority should be directed to take a decision and permit release on compliance of specified conditions.

Analysis: The writ petition complained of inaction by the customs authority on the petitioner's request for provisional release. Considering the facts and submissions, the Court directed the Commissioner of Customs to intimate the additional customs duty payable within the stipulated time. The petitioner was required to pay the duty within seven days of such intimation and furnish a bank guarantee for 10% of the total price of the imported goods. On compliance of these formalities, the customs authority was directed to release the goods within ten days. The directions were stated to be without prejudice to the rights of the parties in any subsequent proceedings.

Conclusion: Provisional release of the detained goods was directed in favour of the petitioner, subject to payment of the indicated additional customs duty and furnishing of a bank guarantee.

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