Provisional release under Customs Act s.110A requires case-specific material for bank guarantee; general undervaluation intelligence against others insufficient post-assessment and duty payment, directing release on bond alone with demurrage waiver.

JUDGMENT :

G.S. KULKARNI, J.

1. This petition under Article 226 of the Constitution of India is filed praying for a direction that the respondents be directed to forthwith release the goods imported by the petitioner, namely ‘in-shell walnuts’ stated to have been imported from the United States of America (USA), under the Bills of Entry lodged in the office of respondent no.2 on 08 December 2025, copies whereof are annexed at Exhibits E to H to the petition.

2. Briefly stated the facts are:-

It is the petitioner’s case that the petitioner purchased USA-origin ‘in-shell walnuts’ from one Diamond Foods LLC, USA. The goods aggregated to approximately 8,000 net kilograms, which were intended for commercial sale in India. It is stated that the invoices were raised in the ordinary course of international trade and were accompanied by the requisite shipping documents.

In December 2025, the consignments were shipped from Oakland, USA, to the Jawaharlal Nehru Port, Navi Mumbai, under four Bills of Lading. The petitioner contends that the goods constitute agricultural produce and are perishable in nature, requiring timely clearance and appropriate storage conditions, to preserve their quality and commercial value. Upon arrival of the goods on 08 December 2025, the petitioner, through its duly appointed Customs House Agents, filed four Bills of Entry before respondent no.2 for home consumption, making all the statutory declarations. No discrepancy whatsoever was revealed or raised at the time of filing of the Bills of Entry.

3. On 11 December 2025, the Bills of Entry were duly assessed by the Customs Officer, and the customs duty, as assessed, was paid in full by the petitioner. At that stage, no queries, objections or conditions were imposed by the customs authorities at the time of assessment, and the goods thus became eligible for release under Section 47 of the Customs Act, 1962 (for short, “the Act”). On 17 December 2025, upon arrival, the goods became available for clearance. However, despite assessment and payment of duty, the imported goods were put on hold by the respondents that too without any reason and/or issuing any show cause notice or a detention memo or written order.

4. The petitioner, being aggrieved by such action on the part of the respondents, addressed an email dated 20 December 2025 to the respondents seeking immediate release of the duty-paid goods, also highlighting, that the goods were perishable in nature, having imminent chances of deterioration, as also a concern on mounting demurrage. The petitioner also raised a grievance regarding detention charges. However, no response whatsoever was received. Despite several representations, no show cause notice under Section 124 of the Act was issued. It is in these circumstances, on 23 December 2025, the present petition was filed praying for the following reliefs:-

“a. This Hon'ble Court be pleased to issue a Writ of Mandamus, or a Writ in the nature of Mandamus or any other appropriate Writ, Order or Direction under Article 226 of the Constitution of India, ordering the Respondents to forthwith release the goods imported by the Petitioners, being Inshell Walnuts, and covered by the Bills of Entry (Exhibits E, F, G and H) to the Petition;

b. This Hon'ble Court be pleased to issue a Writ of Certiorari, or a Writ in the nature of Certiorari or any other appropriate Writ, Order or Direction under Article 226 of the Constitution of India calling for the records of the case involving the g