2018 (5) TMI 792 - HC - Customs

Provisional release of goods - Section 110A of the Customs Act - Held that - Upon compliance of the twin conditions, in accordance with the stipulations of the respondent Department, the goods shall be released provisionally within a period of one week from the date, on which, the petitioner complies with the above twin conditions - Since the goods have been detained and since the DRI has taken up the case for investigation, it goes without saying that the petitioner is entitled to a certificate for waiver of demurrage and the detention charges from the date of detention till the date of release - petition disposed off.

Summary

Issues:
Challenging order for provisional release of goods under Section 110A of the Customs Act.

Analysis:
The petitioner filed a Writ Petition challenging an order passed by the respondent regarding the grant of provisional release of imported goods under Section 110A of the Customs Act. The issue was whether the conditions imposed in the impugned order were onerous and needed modification. The petitioner relied on a previous judgment by the High Court where similar relief was granted. The Court, after considering the arguments of both parties, found that the conditions in the impugned order could be slightly modified to balance the interests of the importer and the Revenue. The Court emphasized the need to safeguard the Revenue's interests while ensuring the importer's compliance. It was noted that the petitioner was willing to comply with the conditions set by the Department for the provisional release of goods. The Court referred to the power under Section 110A of the Customs Act, which allows for the provisional release of goods pending adjudication. The Court highlighted the importance of maintaining a delicate balance between the importer and the Revenue to ensure duties and levies are recovered. The judgment also referenced a previous case where an alternate remedy through appeal was available to the petitioner, but considering the circumstances, the Court decided to modify the conditions and dispose of the Writ Petition accordingly.

The Court partially allowed the Writ Petition and directed the petitioner to comply with specific conditions for the provisional release of goods. The conditions included paying the applicable differential duty, executing a personal bond, and obtaining a waiver of demurrage and detention charges. The Court ordered the provisional release of goods upon the petitioner's compliance with the specified conditions within a week. The judgment mirrored a previous decision by the Court in a similar case, where comparable relief was granted. The Court's decision aimed to strike a balance between the interests of the importer and the Revenue, ensuring compliance with the Customs Act provisions while facilitating the release of goods under suitable conditions. The judgment concluded by disposing of the Writ Petition on the terms outlined, without imposing any costs on the parties involved.