Legal principle

At the provisional release stage under Section 110A, where Customs cannot conclusively establish with available materials that seized imported goods are restricted or prohibited, and the goods are neither contraband nor security-sensitive, the benefit of doubt must be given to the importer, since provisional release can always be reversed in final adjudication.

Court decision

The Court disposed of the writ petitions in favour of the importers, directing the Customs Department, Chennai, to pass orders for provisional release of the goods, imposing such conditions as it deemed fit under the Customs Act, 1962, within four weeks, and to release the goods provisionally within two weeks after the conditions are fulfilled, making the release expressly subject to final adjudication.

Facts

A batch of writ petitions was filed before the Madras High Court by various importer firms (including M/s Taanish Enterprises, M/s Maruti Enterprises, M/s Sagar Copiers, M/s Excel Copiers and others) against the Commissioner of Customs (Chennai II) and allied authorities. The goods in dispute are imported MFDs (multi-function devices), which the importers claim are HSEs exempt from CRO, 2021 and subsequent amended notifications. The Customs Department seized the goods and declined to release them, treating them, on its contention, as restricted or prohibited items. The petitioners sought provisional release of the seized goods under the Customs Act, 1962, offering that any Schedule VIII (serial No.4(j)) documents under the HOW Rules could be verified as a condition of release.

Key provisions

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