Legal principle

Under Section 110A, detained goods can be provisionally released on payment of duty on the declared value, a bank guarantee for 30 percent of the differential duty and a bond for the rest, instead of an excessive security.

Court decision

The writ petition was allowed. Customs must release the goods provisionally if the importer pays duty on the declared value (if not already paid), gives a bank guarantee for 30 percent of the differential duty and a personal bond for the remaining 70 percent. Investigation and adjudication may continue. Customs must also consider a detention certificate under Regulation 6(1) of the Handling of Cargo in Customs Areas Regulations, 2009. All within two weeks.

Facts

Genx Trading Company filed Warehouse (Z-type) Bill of Entry No.9611201 dated 01.06.2026 declaring SS Mop Stick (CTH 73239990) and Sponge (CTH 39262091). On intelligence of misdeclaration and misclassification, customs detained the goods on 07.06.2026 and sent samples to CRCL, Chennai. CRCL first reported on 01.07.2026 that the goods matched the declaration, but after a clarification request said on 31.07.2026 that they were welded stainless steel pipes and tubes. The importer asked for provisional release (temporary release while the case is decided) on 06.08.2026. Customs wanted a bank guarantee of nearly 200 percent of the duty under Circular No.35/2017-Cus. The importer filed a writ petition.

Key provisions

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