2026 (2) TMI 619 - HC - Customs

Provisional release of seized imported multifunctional devices allowed subject to quantified duty payment, bank guarantee, and record preservation.

Provisional release of seized imported multifunctional devices is permitted subject to a defined conditional regime: Customs must quantify any enhanced ... Provisional release of seized goods - deposit of enhanced duty as condition for release - quantification by Customs within specified time - bank guarantee as security for provisional release - adjudication to proceed unimpaired by interim release - objective consideration of demurrage waiver applications - right of petitioner to participate in adjudication - 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. Therefore, we are of the considered opinion that the instant writ petition also therefore can be disposed of at the admission stage itself. Reserving the right of the adjudicating authority to take appropriate decision in the proceedings after permitting the petitioner to represent before the adjudicating authority. 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 seized imported consignment (multifunctional devices) may be provisionally released pending adjudication, and on what conditions.Analysis: Prior writ orders allowing conditional provisional release of seized customs goods were not interfered with by the Supreme Court, while permitting the adjudicating authority to proceed and decide issues strictly in accordance with law. The established conditional framework requires quantification of any enhanced duty within a short prescribed period, deposit/payment of the quantified enhanced duty, provision of a bank guarantee as security, and preservation of the adjudicating authority's jurisdiction to continue proceedings. Provision for objective consideration of any application for waiver of demurrage charges and maintenance of transaction records if goods are sold after provisional release are part of the conditional regime applied in similar cases.Conclusion: Provisional release is permitted subject to conditions: (i) quantification of enhanced duty by Customs forthwith and payment/deposit of the enhanced duty by the petitioner (release within four weeks of payment), (ii) provision of a bank guarantee equal to 10% of the total price of the goods, (iii) objective consideration of any demurrage waiver application, (iv) maintenance and production of transaction/customer details if goods are sold after release, and (v) the adjudicating authority remaining free to decide the matter in accordance with law. This conclusion is in favour of the assessee.