Legal principle

A notification that does not expressly say it is retrospective applies only from its start date, so it cannot be used against goods whose relevant date came earlier. Customs must consider a provisional release request under Section 110A on its merits.

Court decision

The writ petition was disposed of with directions. Customs must decide the request for provisional release under Section 110A within four weeks, imposing conditions as needed. Once the importer meets those conditions, the goods must be 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. Arahant Automation, Mumbai, imported 75 units of used Digital Multifunction Print, Copying and Scanning Machines, described as Secondhand Highly Specialized Equipment, under Bill of Entry No.3297074 dated 22.08.2026 and Bill of Lading dated 14.05.2026, at Chennai. The goods were held by customs. The importer asked for provisional release (release of the goods before the case is finally decided) under Section 110A of the Customs Act. Customs relied on an amendment dated 10.03.2026 to the Notification dated 01.07.2021, in force from 15.06.2026, which allows such equipment only with a specific exemption from the Ministry of Electronics and Information Technology and below 100 units per model per year. The importer filed a writ petition in the Madras High Court.

Key provisions

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