TaxTMI 
TaxTMI 
2026 (10) TMI 151
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.... Yadav. JUDGMENT (PER M. S. KARNIK, J.) 1. The Petitioner seeks quashing and setting aside of the impugned Order dated 9th September, 2026 passed by respondent No. 3 under Section 110A of the Customs Act, 1962, to the extent that it imposes a bond of Rs. 12 crores, stated to be the value of the Barge M.T. Bay III and a bank guarantee of Rs. 6 crores as conditions for its provisional release. 2. The contention of the petitioner is that the conditions imposed by Respondent No. 3 in the impugned Order dated 9th September, 2026 under Section 110A of the Customs Act, 1962, for provisional release of M.T. Bay III are unjustified and unsustainable. 3. The facts of the case in brief are that Richa Shipping Pvt. Ltd. is the charterer ....
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....eleased on executing an e-Bond of Rs. 16,12,03,600/- and an e-Bank Guarantee of Rs. 30 lakh. 7. The petitioner submitted a further representation dated 2nd July, 2026, received on 13th July, 2026, concerning the release/transfer of approximately 459.755 KL of VLSFO, stated to have been purchased from Bharat Petroleum Corporation Limited (BPCL) under Provisional Invoice dated 11th June, 2026. The petitioner also referred to the continuing commercial losses arising from detention of the barge. On 24th July, 2026, A.M.V. Sealeaders Shipping & Logistics LLP submitted a Demand Draft of Rs. 50 lakh as voluntary part payment towards fine/penalty in connection with provisional release of the said barge. 8. Thereafter, a further representation....
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.... an efficacious statutory remedy of appeal before the Commissioner (Appeals) under Section 128 of the Customs Act, 1962, followed by an appeal before the CESTAT under Section 129A. This Court, in Commissioner of Customs (Import-I) Vs. S. S. Offshore Pvt. Ltd. 2018 (361) E.L.T. 51 (Bom) has also recognised the availability of the appellate remedy against an order under Section 110A. The order was passed in compliance with the principles of natural justice. The petitioner was permitted to make an application for provisional release, afforded an opportunity of personal hearing, and a reasoned order was passed. Section 110A of the Customs Act, 1962 expressly empowers the adjudicating authority to provisionally release goods seized under S....
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.... such conditions as the adjudicating authority is required. Further, there is an alternate remedy of appeal before the Commissioner (Appeals). In the present case, we are of the opinion that the conditions imposed are ex facie excessive and unreasonable and hence we are entertaining the present writ petition in the facts of this case. 12. The allegation is that approximately 208 KL of blackish liquid, viz. VLSFO had been transferred from tanks P2 and S2 of the petitioner's barge to M.V. Angara. The VLSFO has been seized and later has been provisionally released. M.V. Angara, in which the VLSFO was released on executing an e-Bond of Rs. 16,12,03,600/- and an e-Bank guarantee of Rs. 30 lakh. Thus, we find that M.V. Angara which was called ....