Provisional release of seized imported goods must be reasonable and not impose unnecessary security where revenue is already protected.

Conditions for provisional release of seized imported commercial goods should be reasonable and commensurate with the revenue risk. Where the goods are not prohibited or subject to import restrictions, are intended for further manufacture, and the importer has already furnished adequate security, including cash deposit and bank guarantee, insisting on additional onerous terms exceeds what is necessary to protect the exchequer. In the described matter, the release conditions were modified and the goods were directed to be released against a bond for full value, while existing security continued to safeguard revenue interests pending further investigation.

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Issues: Whether the conditions imposed for provisional release of seized imported goods were disproportionate and required modification.

Analysis: The goods were commercial in nature, meant for further manufacture, and were neither prohibited nor subject to import conditions. The differential duty exposure was quantified, and security already furnished by the appellant, including cash deposit and bank guarantee, was sufficient to safeguard the exchequer pending further investigation. In such circumstances, insisting on additional onerous conditions would exceed the test of reasonableness for provisional release.

Conclusion: The conditions were modified, and the seized goods of M/s Miraya Vinyls Pvt. Ltd. were directed to be released on furnishing of bond for the full value of the goods.

Final Conclusion: The appeal succeeded to the extent of securing provisional release on less onerous terms, while preserving revenue interests through bond and existing security.

Ratio Decidendi: Conditions for provisional release of seized goods must be reasonable and commensurate with the revenue risk, and cannot be more onerous than necessary where the exchequer is otherwise adequately protected.

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