Provisional release of imported goods allowed against 25% bank guarantee, with all substantive objections left open.

Imported goods were ordered to be provisionally released on the importer furnishing a bank guarantee for 25% of the value shown in the bill of entry and commercial invoice. The Court treated the absence of any stated adjudication or demand as material, and followed the approach in the cited Division Bench order to permit release against limited security. It also kept all rival contentions, including the legality of the reports, expressly open, so the merits of the dispute remained undecided.

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Issues: Whether the imported consignment was liable to be released provisionally on furnishing bank guarantee for 25% of its value, while leaving the rival contentions and the legality of the reports open.

Analysis: The petition was disposed of in the light of the approach adopted in the cited Division Bench order, where provisional release of the imported consignment was directed against security to the extent of 25% of the value. In the present case, there was no adjudication or demand stated to have been made, and the petitioner undertook to furnish bank guarantee for 25% of the value shown in the bill of entry and commercial invoice. The Court therefore found it appropriate to direct release of the goods on the stated security, while expressly keeping all other contentions open.

Conclusion: The imported consignment was directed to be released provisionally in favour of the petitioner upon furnishing bank guarantee equivalent to 25% of the value of the goods.

Final Conclusion: The petition succeeded to the extent of obtaining release of the goods on security, with the merits of the dispute left undecided.

Ratio Decidendi: Where no adjudication or demand has yet been made, provisional release of imported goods may be directed on furnishing appropriate security or bank guarantee for a portion of the consignment value, while leaving substantive issues open.

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