Provisional release of seized gold bars upheld where records showed prima facie correlation and revenue was secured by conditions.

The Tribunal's provisional release of seized gold bars was upheld because it found a prima facie correlation between the purchased gold and the seized goods on the basis of challans, serial numbers, authorised signatures, gate pass particulars and the packing list. The release was only provisional and was secured by conditions protecting the revenue, including a bond for the full value and a bank guarantee for 25% of the value of the seized goods. On that record, the appellate court held that the Tribunal had considered the relevant material and that no substantial question of law arose in the revenue's challenge.

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Issues: Whether the Tribunal was justified in ordering provisional release of the seized gold bars on the basis of a prima facie correlation between the purchased gold and the seized goods, and whether any substantial question of law arose in the revenue's appeal.

Analysis: The Tribunal had examined the challans, serial numbers, authorised signatures, gate pass particulars and packing list, and found a prima facie correlation between the gold bars purchased by the respondent and the gold seized by the officers. The release was directed only provisionally and subject to conditions securing the revenue, including a bond for full value and bank guarantee to the extent of 25% of the value of the seized goods. On these facts, the appellate court found that the Tribunal had considered the relevant material and that the revenue's challenge did not raise any substantial question of law.

Conclusion: The order granting provisional release was upheld and the revenue's appeal failed.

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