Provisional release of seized goods cannot be denied merely on alleged prohibition under customs law.

Section 110A of the Customs Act permits provisional release of seized goods even where the department alleges that they are restricted or prohibited for lack of DGFT authorisation or BIS registration. The Tribunal treated the dispute as confined to provisional release, noted that no final adjudication had confirmed the goods as prohibited, and rejected a blanket denial based only on alleged non-compliance with import conditions. It held that provisional release cannot be denied merely because the goods are asserted to be deemed prohibited, as that would undermine the statutory scheme of release and redemption fine. The order refusing release was set aside and provisional release was directed on conditions.

---

---

Issues: Whether imported goods alleged to be restricted or prohibited for want of DGFT authorization and BIS registration could nevertheless be provisionally released under Section 110A of the Customs Act, 1962.

Analysis: The dispute was confined to provisional release and not final adjudication. The seized goods were only alleged to be prohibited, and no final adjudication had yet confirmed them as prohibited goods. The Tribunal relied on the settled position that Section 110A of the Customs Act, 1962 empowers provisional release of seized goods and does not justify a blanket denial merely because the department asserts non-compliance with import conditions or treats the goods as deemed prohibited. The Tribunal also noted that provisional release had been permitted in similar matters and that denial of release solely on the ground of alleged prohibition would make the statutory scheme of provisional release and redemption fine under the Customs Act ineffective.

Conclusion: The goods were held eligible for provisional release, subject to conditions, and the appellant succeeded on this issue.

Final Conclusion: The order refusing provisional release was set aside and the imported goods were directed to be released provisionally on compliance with the imposed conditions.

Ratio Decidendi: Seized goods may be provisionally released under Section 110A of the Customs Act, 1962 even where they are alleged to be prohibited, unless and until final adjudication establishes otherwise; a mere allegation of prohibition does not by itself bar provisional release.

---