Legal principle

A notification that tightens an exemption applies only from the date it comes into force, unless it expressly says otherwise; it cannot be used against imports whose bill of lading is dated earlier.

Court decision

Writ petition disposed of. Customs must decide the request for provisional release under Section 110A within four weeks, and may impose conditions. Once the importer meets the conditions, the goods must be provisionally released within two weeks. The release is subject to the final adjudication (the formal decision on the case), which must be decided independently on merits.

Facts

M/s. Smart Impex Solutions, Gurugram, imported 110 units of second-hand Highly Specialized Equipment (used digital multifunction print and copying machines) at Chennai under Bill of Entry No.3133379 dated 14.08.2026, covered by Bill of Lading No.OOLU2327603440 dated 12.06.2026. Customs did not release the goods. The importer asked for provisional release under Section 110A of the Customs Act (release of seized or held goods before the case is finally decided, on bond and conditions) and filed writ petition WP No. 36890 of 2026 in the Madras High Court. Customs argued that an amendment dated 10.03.2026 to a notification dated 01.07.2021, in force from 15.06.2026, limits the exemption for such equipment to less than 100 units per model per year, and that under Section 15 the bill of lading date decides which rule applies. The court passed identical orders for 6 other importers in the same situation.

Key provisions

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