2017 (9) TMI 541 - HC - Customs

Order for implementation of order - provisional release of goods - Held that - As long as the order passed by the first respondent remains intact, the second respondent cannot sit in judgment over the order of the first respondent. However, this Court is conscious of the fact that because of the provisional release, the ongoing investigation should not be hampered - there will be a direction to the first respondent to provisionally release the goods in terms of the order dated 16.06.2017 - petition allowed.

Summary

Issues:
- Implementation of order for provisional release of goods
- Compliance with conditions for release
- Impact on ongoing investigation by Directorate of Revenue Intelligence

Analysis:
The petitioner sought a direction for the first respondent to implement an order permitting provisional release of goods mentioned in a specific Bill of Entry. The first respondent had imposed three conditions for release, including payment of duty, furnishing a Bank Guarantee, and execution of a personal Bond. The petitioner had complied with conditions (b) and (c) but faced issues with condition (a) due to a communication from the Directorate of Revenue Intelligence (DRI) advising against releasing the goods. The petitioner argued that the order for provisional release was statutory and should be enforced by the first respondent.

The second respondent, representing the DRI, explained that an extensive investigation was ongoing not only for the petitioner's goods but also for other containers importing assorted goods from China. The second respondent expressed concerns that releasing the goods could impede the investigation. However, the Court noted that as long as the first respondent's order for provisional release stood, the second respondent could not overrule it. The Court acknowledged the need to balance the release of goods with the ongoing investigation.

In its decision, the Court directed the first respondent to provisionally release the goods as per the order dated 16.06.2017, upon payment of the specified duty amount and verification of the Bank Guarantee and Personal Bond within 10 days. The Court allowed the second respondent to examine the imported cargo during this period to ensure compliance with the investigation. The writ petition was disposed of with no costs awarded.