Provisional release of seized gold and jewellery allowed pending adjudication, with bond and bank guarantee conditions.

Provisional release of seized gold and gold jewellery under Section 110A of the Customs Act was held to be justified where the goods were shown as carried for business purposes and supported by GST stock records. The Tribunal found no material to treat them as imported or prohibited goods, and held that pending adjudication or the possibility of future confiscation did not by itself justify refusal of release. It further noted that, even if confiscation were later ordered, redemption fine under Section 125 would remain available. Reliance on investigation statements alone was insufficient to deny interim release. Release was therefore allowed subject to bond and bank guarantee conditions.

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Issues: Whether the assessee was entitled to provisional release of seized gold and gold jewellery pending adjudication under Section 110A of the Customs Act, 1962.

Analysis: The seized gold and gold jewellery were found to be carried for business purposes and supported by stock records maintained under GST law. The goods were not shown to be imported articles or prohibited goods. The legal position applied was that provisional release should not be refused merely because adjudication is pending or confiscation may later be ordered, since confiscable goods can still be provisionally released on furnishing bond and security. The Tribunal also noted that gold is not prohibited for import and, if ultimately confiscated, redemption fine under Section 125 of the Customs Act, 1962 would remain available. Reliance on statements recorded during investigation was held insufficient to deny provisional release at this stage.

Conclusion: The assessee was entitled to provisional release of the seized gold and gold jewellery, subject to bond and bank guarantee conditions.

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