Legal principle

Where goods were handed over to the first carrier under a multimodal Bill of Lading before a restrictive policy amendment came into force, the amendment cannot be used to refuse the importer's request for provisional release under Section 110A.

Court decision

The writ petition was disposed of with directions. Customs must decide the request for provisional release under Section 110A within four weeks of receiving the order, on conditions allowed by law. Once the importer meets those conditions, the goods must be released within a further two weeks. The release is subject to the final adjudication (the decision on the case) under the Customs Act, which the adjudicating authority must decide independently.

Facts

M/s. Shreeji Corporation, Mumbai, imported 288 units of second-hand Digital Multifunction Print and Copying Machines, described as highly specialised equipment, under Bill of Entry No.9231990 dated 01.04.2025 at Chennai. Customs did not release them. The importer filed a writ petition in the Madras High Court asking for provisional release (temporary release while the case is pending) on a simple bond for 100% of the enhanced value fixed by Chartered Engineers M/s. Supreme Techno Associates Pvt. Ltd. and payment of GST, customs duty being exempted. Customs argued that an amendment to the Notification dated 01.07.2021, in force from 15.06.2026, now allowed the exemption only for fewer than 100 units per model per year, and that the Bill of Lading date decides which rule applies under Section 15.

Key provisions

• Section 110A, Customs Act, 1962 — Provisional release of goods, documents and things seized