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 determining the date of import under Section 15 of the Customs Act, 1962.

Court decision

The writ petition was disposed of in favour of the petitioner: the respondents were directed to consider the request for provisional release under Section 110A and pass appropriate orders with lawful conditions within four weeks, and upon the petitioner's compliance with those conditions, to provisionally release the goods within two weeks thereafter, the release being subject to the outcome of adjudication proceedings, which the adjudicating authority must decide independently on merits.

Facts

M/s. Maruti Enterprises imported two consignments of 92 units and 96 packages of secondhand Highly Specialized Equipment (Digital Multifunction print and copying machines and parts) under Bills of Lading dated 16.05.2026 and 23.05.2026, filed through Bills of Entry dated 20.07.2026 and 25.07.2026. The petitioner sought a writ of mandamus directing Customs to provisionally release the goods under Section 110A of the Customs Act, 1962 on execution of a simple bond for 100% of the enhanced value plus applicable GST (customs duty exempted), based on Chartered Engineers' valuation certificates. The department resisted, relying on an amendment dated 10.03.2026 (in force from 15.06.2026) to the Notification dated 01.07.2021 governing exemption for Highly Specialized Equipment.

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