Release of goods after stay of recovery and payment of redemption fine cannot be withheld without legal basis.

Once the Tribunal dispensed with pre-deposit of duty and penalty, stayed recovery until disposal of the appeal, and the redemption fine had been paid, the Department had no legal basis to retain the goods. The fact that the order-in-original had not been set aside did not justify withholding clearance. The cited High Court view treated non-release of goods in these circumstances as unjust and illegal, and the Department was directed to allow clearance of the goods.

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Issues: Whether the Department could withhold clearance of the goods after the Tribunal had dispensed with pre-deposit of duty and penalty and the redemption fine had already been paid.

Analysis: The Tribunal held that once pre-deposit of duty and penalty had been dispensed with and recovery stayed till disposal of the appeal, and the redemption fine had been deposited, the Department had no basis to retain the goods. The departmental stand that the impugned order-in-original had not been set aside did not justify withholding clearance. Support was taken from the cited High Court decision treating non-return or non-release of goods in such circumstances as unjust and illegal.

Conclusion: The Department was directed to allow clearance of the goods.

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