Remote possibility of goods being found prohibited or restricted at time of adjudication, cannot be subjected to non release u/s 110A of Customs Act: CESTAT [Read Order]

The Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) ruled that the goods even if there is remote possibility of being found prohibited or restricted at time of adjudication, cannot be subjected to non release under Section 110A of Customs Act, 1962.

The Appellant has filed the present appeal against the letter/order dated the 03.08.2023 addressed by the Respondent, wherein the Principal Commissioner of Customs rejected the request for provisional release of the impugned goods imported under Section 110A of the Customs Act, 1962.

The counsel for the appellant submitted that out of the 27 gold dore bars, there is one gold dore bar of less than 5 kg weight. The import of this gold bore is a genuine error by the foreign exporter as evidenced by their email attached. The said gold bar was declared to the proper officer at the time of import as weighing 4.240 kg and there is no misdeclaration at any point in time.

In this context, it was submitted that in the course of business, such errors may happen and the Customs Act, 1962 is conscious of the possibility of such errors occurring. Section 26A of the Act provides for refund of import duty on such goods and the legislative intent is very clear in this regard.

A Two-Member Bench comprising Somesh Arora, Judicial Member and Hemambika R Priya, Technical Member observed that “Therefore, We are of the view that goods even if there is any remote possibility of being found prohibited or restricted at the time of adjudication is there, cannot be subjected to non release in terms of Section 110A. In view of foregoing, we allow the provisional release of 26 Gold Dore weighing 5 kg plus more.”

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