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 duty forthwith and the petitioner must pay or deposit that quantified amount, after which release follows within a short period; the petitioner must furnish a bank guarantee equal to 10% of the goods' total price as security; any demurrage waiver application must be considered objectively; transaction and customer records must be maintained and produced if goods are sold post-release; and the adjudicating authority retains full jurisdiction to decide the substantive dispute in accordance with law.

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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.

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