JUDGMENT

C. Hari Shankar, J. - This appeal, at the instance of the Additional Director General (Adjudication), Directorate of Revenue Intelligence (DRI) (hereinafter referred to as "the ADG, DRI"), assails Final Order No. 51470/2019, dated 13th November, 2019, passed by the Customs, Excise and Service Tax Appellate Tribunal (hereinafter referred to as "CESTAT") in Customs Appeal No. 52593 of 2019 which, in turn, was preferred, before the learned Tribunal against Order-in-Original, dated 4th October, 2019 passed by the appellant.

2. Vide order dated 29th January, 2020, this appeal was admitted on the following substantial questions of law:

"(i) Whether the CESTAT can substitute its view for the discretion of the Adjudicating Authority U/S 110A?

(ii) Whether the appellate jurisdiction of the CESTAT against an order passed u/s 110A is restricted to examining whether such an order has been passed after duly considering the law in respect of provisional release and not pass arbitrarily?

(iii) Whether the appellant is entitled to provisional release of the seized gold in question in view of the facts and circumstances of this case?"

Though, as noted hereinabove, three questions of law were framed by this Court, Question No. (iii) effectively subsumes Questions No. (i) and (ii).

A Brief Factual Overview

Relevant statutory provisions/Notifications

3. Exemption to imports under Advance Authorisation scheme

3.1 Notification 18/2015-Cus, issued under Section 25(1) of the Customs Act, exempts, completely, from all Customs duties, materials imported into India against a valid Advance Authorisation issued by the Directorate General of Foreign Trade (DGFT) in terms of para 4.03 of the Foreign Trade Policy 2015-2020 (hereinafter referred to as "the FTP"), subject to following the procedure prescribed in the Notification.

3.2 The Advance Authorisation Scheme is one of the export promotion schemes, contained in the FTP, and contemplates allowing of duty-free imports, under a valid Advance Authorisation issued by the DGFT. Para 4.03(a) of the FTP reads thus:

"Advance Authorisation is issued to allow duty free import of input, which is physically incorporated in export product (making normal allowance for wastage). In addition, fuel, oil, catalyst which is consumed / utilized in the process of production of export product, may also be allowed."

4. Duty-Free re-import of jewellery, exported for participation in exhibitions abroad

4.1 Para 4.46 of the FTP permits export of jewellery, for participation in exhibitions abroad, and reads thus:

"4.46 Export Promotion Tours/ Export of Branded Jewellery

(i) Nominated Agencies and their associates, with approval of Department of Commerce and with approval of Gem & Jewellery Export Promotion Council (GJEPC), may export gold / silver / platinum jewellery and articles thereof for exhibitions abroad.

(ii) Personal carriage of gold / silver / platinum jewellery, precious, semiprecious stones, beads and articles and export of branded jewellery is also permitted, subject to conditions as in Handbook of Procedures."

4.2 Re-import of jewellery, exported abroad, is permitted, duty-free, under S. No. 5 of the table contained in Notification 45/2017-Cus dated 30th June, 2017, subject only to the satisfaction, of the Assistant/Deputy Commissioner of Customs, that the re-imported jewellery is the same as that which was exported. Notification 45/2017-Cus, to the extent it is relevant for the purposes of the present controversy, is reproduced thus:

"In exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962 (52 of 1962) the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby exempts the goods falling within any Chapter of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) and specified in column (2) of the Table below when re-imported into India, from so much of the duty of customs leviable thereon which is specified in the said