Provisional release conditions for seized imported goods were modified to balance revenue protection and investigation needs.

Provisional release of seized imported goods may be ordered on substituted conditions that balance revenue protection with the importer's right to obtain release. The Madras HC modified the customs authority's terms, directing release on payment of the declared duty, 50% of the differential duty, and execution of bonds, while dispensing with the bank guarantee requirement. The importer was also required to cooperate with the ongoing investigation, and the inquiry was directed to be completed expeditiously. The result was limited relief through revised provisional release conditions rather than unconditional release.

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Issues: Whether the impugned customs order governing provisional release of the seized goods required modification by replacing the departmental conditions with the conditions adopted in the earlier similar matter.

Analysis: The writ petition challenged the refusal to release the imported goods except on stringent conditions including re-determined duty, bond and bank guarantee. The Court accepted the respondents' stand that the conditions imposed in the earlier similar order should be followed. It therefore modified the impugned order and directed provisional release on the petitioner remitting the entire declared duty, paying 50% of the differential duty, and executing bonds in the amounts specified by the Court instead of furnishing a bank guarantee. The Court also required cooperation with the ongoing investigation and directed expeditious completion of the inquiry.

Conclusion: The provisional release conditions were modified in favour of the petitioner, but only to the extent indicated by the Court, and the goods were directed to be released on compliance with the substituted conditions.

Final Conclusion: The writ petition succeeded only to the limited extent of securing provisional release on revised conditions, and the matter was disposed of accordingly.

Ratio Decidendi: In matters of provisional release of seized imported goods, the Court may substitute the departmental conditions with judicially determined conditions that balance release of goods against protection of revenue and continuation of investigation.

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