TaxTMI 
TaxTMI 
2023 (12) TMI 597
X X X X Extracts X X X X
X X X X Extracts X X X X
....7 (hereafter 'the impugned Circular') as ultra vires the provisions of the Customs Act, 1962 (hereafter 'the Customs Act'). The petitioner also impugns an order dated 02.12.2023 (hereafter 'the impugned order') passed by respondent no. 6 directing provisional release of the goods imported by the petitioner albeit on furnishing a bond equivalent to the value of seized goods of Rs.3,70,24,887/- and a bank guarantee/security deposit equivalent to 120% of the said amount, amounting to Rs.4,44,29,864/-. 2. According to the petitioner, paragraph 2 of the impugned Circular runs contrary to the provisions of Section 110A of the Customs Act, which confers the discretion on the adjudicating authority to impose such conditions and demand such secur....
X X X X Extracts X X X X
X X X X Extracts X X X X
....cular) on the ground that it curtails the discretion of the Adjudicating authority to impose such conditions as it may require. Section 110A of the Customs Act, 1962 (hereafter 'the Act') reads as under: "110A. Provisional release of goods, documents and things seized or bank account provisionally attached pending adjudication.-Any goods, documents or things seized or bank account provisionally attached under section 110, may, pending the order of the adjudicating authority, be released to the owner or the bank account holder on taking a bond from him in the proper form with such security and conditions as the adjudicating authority may require." 3. It is apparent from a plain reading of Section 110A of the Act that the Ad....
X X X X Extracts X X X X
X X X X Extracts X X X X
....on request of the owner of the seized goods, subject to executing a Bond for the full value/estimated value of the seized goods. 2.2 Further, in addition to the Bond mentioned at Para 2.1 above, the competent authority shall take a Bank Guarantee or Security Deposit to cover the following : i. the entire amount of duty/differential duty leviable on the seized goods being provisionally released; ii. amount of fine that may be levied in lieu of confiscation under Section 125 of the Customs Act, 1962 at the time of adjudication of the case. While securing the same, the competent authority shall take into account the nature of the seized goods, the duty and charges payable on the said goods, their market price and the....
X X X X Extracts X X X X
X X X X Extracts X X X X
....nd things, are eligible for provisional release. Goods, which are eligible for provisional release under Section 110A of the Act, cannot be rendered ineligible for provisional release by virtue of the Circular. (Be it noted, here, that we refer to the "eligibility" of the goods for provisional release, as distinct from the "entitlement" thereof, which has to be determined by the adjudicating authority in exercise of the discretion conferred on her, or him, by Section 110A.) Para 2 of Circular 35/2017-Cus, therefore, effectively seeks to supplant Section 110A, to that extent, and has, therefore, to be regarded as void and unenforceable at law." 7. This Court is informed that the SLP preferred against the said decision has been rejec....