Legal principle

Unless a statutory notification expressly provides for retrospective operation, it can only operate prospectively and cannot govern imports covered by a bill of lading issued prior to its commencement, the bill of lading date being the relevant date under Section 15 of the Customs Act, 1962.

Court decision

The Court disposed of the writ petition in the petitioner's favour, holding that the amendment effective 15.06.2026 cannot govern imports covered by bills of lading issued prior to its commencement, and therefore the respondents cannot refuse to consider the request for provisional release by relying on that amendment. The respondents were directed to consider the Section 110A request and pass appropriate orders with conditions within four weeks, and to provisionally release the goods within two weeks upon the petitioner's compliance, such release remaining subject to the outcome of adjudication proceedings.

Facts

M/s.Smart Impex Solutions imported two consignments of secondhand Highly Specialized Equipment (digital multifunction print and copying machines) under bills of entry dated 03.08.2026, covered by bills of lading dated 26.05.2026 and 24.05.2026, with found quantities of 208 pkgs against declared invoice quantities of 107 and 108 units. It filed a writ petition under Article 226 seeking a mandamus for provisional release of the goods under Section 110A of the Customs Act, 1962 on a simple bond for 100% of the enhanced value plus applicable GST (customs duty being exempt), as valued by Chartered Engineers. The customs authorities resisted, relying on an amendment dated 10.03.2026 (effective 15.06.2026) to the Notification dated 01.07.2021, which exempts Highly Specialized Equipment only if imported in less than 100 units per model per year and subject to a specific MeitY exemption.

Key provisions

• Section 110A, Customs Act, 1962 — Provisional release of goods, documents and things seized
• Section 15, Customs Act, 1962 — Date for determination of rate of duty and tariff valuation of imported goods