The Adjudicating Authority's discretion to impose conditions for provisional release under Section 110A of the Customs Act must be exercised judiciously, and conditions, particularly for re-export, must be reasonable, avoiding onerous demands for redemption fines or excessive bank guarantees.

SOMESH ARORA

Appeal No. C/10185/2026

1. The Appellant is engaged in the business of import and trading of TFT LCD parts for manufacturing of wide display panel, PCB for TFT LCD parts for manufacturing of display panel. The Appellant in usual course of import of above said goods, entered into an Agreement with M/s Tenley Limited, Room 2914 29/F, Ho King Commercial Centre 2-16 FA Yuen Street Mongkok, Kowloon, Hong Kong. The supplier issued Invoice No. TLSMI3004-56 dated 30.04.2025 for supply of above goods of total value of USD 95241.60. The Appellant filed the Bill of Entry No. 2140947 dated 19.05.2025 for clearance of these goods and claimed duty exemption under Serial No. 18 of Notification No. 024/2005-Cus.

1.1 The officers of Directorate of Revenue Intelligence (DRI), Zonal Unit, Indore on certain intelligence that the Appellant has indulged in import of various parts of LED/LCD TVs by mis-declaring the same as “Parts of Computer Monitors", put the consignment imported vide above Bill of Entry on hold. They examined the above said consignment on 23.05.2025 and detained the goods for further investigation vide Panchnama dated 23.05.2025.The goods were examined by a Customs empanelled Chartered Engineer who vide his Report dated 24.05.2025 opined that the goods are parts of LED TV and not for monitor and therefore, duty benefit under Sl. No. 18 of Notification No. 024/2005-Cus was not available. The statements of the concerned persons and the Proprietor of the Appellant firm Shri Mayank Jain were recorded on 03.06.2025.

1.2 The goods imported vide Bill of Entry 2140947 dated 19.05.2025 were put under seizure vide Seizure Memo issued under F No. DRI/IZU/34-209S/CINT-25/189 dated 05.06.2025 as the goods appeared liable for confiscation under Section 111(m) of the Customs Act, 1962. The Proprietor of the Appellant firm Sh. Mayank Jain was enlarged on bail by the Ld. 7h Additional Sessions Judge, Bhuj-Kutch, vide Order dated 25.06.2025, subject to certain conditions including deposit of Customs Duty amount of Rs. 12,34,331/- before the Ld. Court of Additional Chief Judicial Magistrate, Mundra, Kutch which was deposited vide receipt dated 25.06.2025.

1.3 The Appellant made request vide Letters dated 07.07.2025, 21.07.2025, 31.07.2025, 11.08.2025, 21.08.2025, 25.08.2025 to the Department for provisional release of the seized goods as no more investigation are to be carried so far as the seized goods are concerned. However, no reply was received to any of the request and the goods remained un-cleared. They therefore filed a Writ Petition under Article 226 of the Constitution of India before the Hon'ble High Court of Gujarat wherein notice was issued to the department. While, the writ Petition was pending, the department vide impugned order dated 16.10.2025 permitted provisional clearance of goods putting very onerous conditions.

1.4 In the meantime, a Show Cause Notice dated 28.11.2025 was also issued to the Appellant. The abovesaid Writ Petition was listed before the Hon'ble High Court on 29.1.2026, which was disposed of in view of the provisional release order having been passed and prayer in the writ petition having been satisfied with liberty to avail the appropriate Appellate remedy. The appellant made a request vide letter dated 03.02.2026 before the Ld. Adjudicating Authority to re-consider the provisional release order in the light of the fact that show cause notice has been issued.

1.5 The Ld. Adjudicating Authority, vide F. No. CUS/APR/MISC/7548/2025-Gr5-6 dated 19.02.2026 modified the condition of provisional release, directing the appellant to furnish a bond equivalent to the re-determined value of goods as per the Sho