Provisional release of seized imported goods allowed subject to deposit of enhanced duty, 10% bank guarantee and compliance conditions.

Whether seized imported multifunctional devices may be provisionally released pending adjudication was resolved by permitting conditional interim release: the court applied precedent allowing provisional relief while preserving the adjudicating authority's competence to decide merits, and imposed revenue-protective conditions - prompt customs quantification and deposit/payment of the enhanced duty within prescribed timelines, provision of a bank guarantee equal to 10% of the goods' total price, retention and production of customer transaction records if sales occur, and objective consideration of any demurrage waiver application; the petition for provisional release was allowed subject to these conditions.

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Issues: Whether the seized imported consignment of multifunctional devices may be provisionally released pending adjudication and, if so, on what conditions.

Analysis: The petition challenges a seizure memo seeking interim release of the imported goods. The Court relied on precedent of similar writ petitions where conditional interim release was ordered and the Supreme Court declined to interfere with that interim relief while permitting adjudication to proceed. The Court noted that the present stage concerns only provisional release and that the adjudicating authority's right to decide the matter on merits remains reserved. The Court identified practical conditions to protect revenue interests consisting of (i) deposit/payment of the enhanced duty amount following customs quantification within specified timelines, (ii) provision of a bank guarantee equal to 10% of the total price of the goods, (iii) maintenance and production of transaction details if the goods are provisionally sold, and (iv) objective consideration of any application for waiver of demurrage charges.

Conclusion: The writ petition is allowed and the respondent authorities are directed to pass an order for provisional release of the goods subject to the conditions of prompt customs quantification, payment/deposit of the enhanced duty within the prescribed period, provision of a bank guarantee equal to 10% of the total price, maintenance and production of customer transaction details if sales occur, and consideration of any demurrage waiver application; the adjudicating authority remains at liberty to decide the adjudication proceedings on merits without being influenced by this order.

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