Provisional release on security: boat may be released upon cash deposit and bond while ISFTA classification remains pending.

Petitioner entitled to provisional release of an imported boat subject to provision of adequate security pending final determination of tariff classification and ISFTA applicability; HC treated the cash deposit already made and the proposed additional cash deposit with a bond undertaking payment of any remaining differential duty as sufficient interim security, recognising that any exemption or refund would follow if the designated authority later grants ISFTA benefits, and that any additional liability remains recoverable under the statutory regime. All classification and ISFTA contentions are kept open for the designated officer's decision.

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Issues: (i) Whether the petitioner was entitled to provisional release of the imported boat on furnishing specified cash security and a bond for the balance differential duty pending final determination of classification and applicability of Indo Sri Lanka Free Trade Agreement (ISFTA) benefits.

Analysis: The Court noted that the substantive question regarding classification and applicability of ISFTA benefits was pending consideration by the designated authority and that if proper classification entitled the petitioner to ISFTA benefits, exemption and refund could follow. In the interim, the Court examined whether adequate security had been furnished for the differential duty computed by the authorities. The petitioner had already deposited Rs. 8,04,303 and expressed willingness to deposit Rs. 75,00,000 in cash and to furnish a bond undertaking payment of any remaining liability. The Court treated such deposits and the proposed bond as sufficient security for the differential duty pending final adjudication, and recognised the recoverability of any additional liability in accordance with the relevant statutory scheme.

Conclusion: The petitioner is entitled to provisional release of the boat on deposit of Rs. 75,00,000 in cash (in addition to the Rs. 8,04,303 already deposited) and on furnishing a bond for the balance differential duty; all contentions on classification and ISFTA applicability are kept open for decision by the designated officer.

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