2026 (2) TMI 618 - HC - Customs

Provisional release of seized imported multifunctional devices permitted subject to enhanced duty payment, bank guarantee and record production

Provisional release of seized imported multifunctional devices is permitted on condition that Customs quantifies the enhanced duty within one week and the ... Entitlement to provisional release of the seized imported consignment of multifunctional devices - HELD THAT:- Pursuant to the disposal of the SLP, this Court has disposed of all such writ petitions whereby the goods were released and the proceedings were pending before the adjudicating authority. Similar nature of facts are also there in the instant case also where the stage at this juncture is only the seizure memo and prayer is also only for an interim release of the seized goods. In the factual matrix narrated in the preceding paragraphs, we are of the considered opinion that the instant writ petition also therefore can be disposed of at the admission stage itself. In addition, the petitioners are also directed to provide a bank guarantee worth 10 percent of the total price of the goods imported by them. Further, it is also ordered that in the event if the petitioners upon release of the goods provisionally makes and sell the supply to their customers, details of the customers that of relevant price and details of the respective transactions shall be maintained and made available to the respondent authorities from time to time. Accordingly, this writ petition is allowed. Issues: Whether the petitioner is entitled to provisional release of the seized imported consignment of multifunctional devices subject to specified conditions pending adjudication.Analysis: The matter involves an application for interim release of goods seized under a seizure memo where prior, closely analogous orders have permitted provisional release on fulfilment of specified conditions. The operative framework applied permits provisional release subject to: payment/deposit of the quantified enhanced duty; prompt quantification by Customs within one week; release within four weeks of receipt of duty; provision of a bank guarantee equal to 10% of the total price of the imported goods; and preservation of consignation and transaction details if the goods are provisionally sold. The order preserves the jurisdiction of the adjudicating authority to continue and decide the substantive proceedings uninfluenced by the conditional release, and allows consideration of any application for waiver of demurrage objectively.Conclusion: Provisional release of the seized consignment is permitted subject to (i) quantification of enhanced duty by Customs within one week, (ii) payment/deposit of the entire quantified enhanced duty and release within four weeks of such payment, (iii) provision of a bank guarantee equal to 10% of the total price of the goods, (iv) maintenance and production of customer and transaction details if goods are provisionally sold, and (v) the adjudicating authority remaining free to decide the substantive proceedings on merits.