2026 (1) TMI 1221 - HC - Customs

Provisional release of imported goods: onerous conditions modified to allow bonds, duty payments and seven-day release upon compliance

Modification of onerous provisional release conditions for imported goods: petitioner required to remit declared duty, pay 50% of departmental ... Provisional release of imported goods - modification of conditions for provisional release - onerous conditions - equality of treatment and precedent - security by bond instead of bank guarantee - cooperation with investigation by DRI and Customs - HELD THAT:- This Court had an occasion to deal with a similar matter involving an identical case. In that case as well, a provisional release order was challenged since the conditions imposed for provisional release were onerous in nature similar to the one passed in the impugned order. The order passed by this Court in the case of M/s. Shree Sai Impex vs. The Principal Commissioner of Customs (Preventive) and another [2025 (9) TMI 1172 - MADRAS HIGH COURT], involving an identical matter, has also been placed on record by the petitioner. Accordingly, a similar order is passed in favour of the petitioner as well by modifying the impugned order, imposing the following conditions; a) The petitioner is directed to remit the entire duty as declared by them. b) The petitioner is directed to pay 50% of the differential duty for the total value arrived at by the Department. c) The petitioner shall execute a bond for a sum of Rs. 71,00,000/- (Rupees Seventy One Lakhs only) and d) The petitioner shall also execute a bond for a sum of Rs. 29,00,000/- (Rupees Twenty Nine Lakhs only) instead of Bank Guarantee. On compliance, the goods shall be released by the respondents within a period of seven days from the date of compliance of the conditions. On fulfilment of the aforesaid conditions by the petitioner, the respondents shall provisionally release the goods to the petitioner. Issues: Whether the impugned provisional release order imposing alleged onerous conditions for release of imported goods (Viscose Knitted Fabric) should be modified and replaced with conditions of remittance of declared duty, payment of 50% of differential duty and specified bonds in lieu of bank guarantee as in an earlier identical order.Analysis: The petition challenges the conditions imposed for provisional release as onerous. An earlier decision in a materially identical matter established modified conditions for provisional release consisting of remittance of the entire declared duty, payment of fifty percent of the departmental differential duty, and execution of specified bonds in place of a bank guarantee. That earlier order has attained finality. The petitioner has offered to comply with the same conditions. Having regard to parity of treatment with the earlier final order in an identical case, and the petitioner's undertaking to comply, the provisional release conditions in the impugned order were modified to align with the earlier settled terms; the petitioner must also cooperate with the ongoing DRI/Customs investigation and the investigating agency is directed to conclude the investigation expeditiously.Conclusion: The impugned provisional release order dated 16.07.2025 is modified and set aside insofar as the conditions for release; the petitioner is directed to remit the entire declared duty, pay fifty percent of the differential duty, execute a bond for Rs. 71,00,000 and a bond for Rs. 29,00,000 in lieu of a bank guarantee, and on compliance the goods shall be provisionally released within seven days. No costs.