Plea for Provisional Release of Goods: Madras HC Orders Customs to Decide Representation Based on SC's Navshakti Industries Ruling [Read Order]

The Madras High Court has directed the Customs Department to consider the representation of provisional release of goods under Section 110A of the Customs Act, 1962 based on the Supreme Court judgment in Navshakti Industries.

The petitioner, M/s. HI Rexine, had filed a writ petition seeking a mandamus directing the Customs authorities to provisionally release goods imported under Bill of Entry No.7882362, dated 20.01.2025, under Section 110A of the Customs Act, 1962.

During the proceedings, the petitioner’s counsel, Mr.S.Baskaran informed the Court that, instead of a direct order for release, the petitioner would be satisfied if the Customs Department is directed to consider their representation for provisional release on merits, in accordance with law and the principles laid down in the Navshakti Industries ruling.

The standing counsel for Customs contended that the representation enclosed in the writ petition was in fact for final assessment and not specifically for provisional release under Section 110A.

In response, the petitioner offered to file a fresh representation within a stipulated time frame, provided the Court ensures the same is considered in light of the Navshakti judgment.

In the Navshakti case, the Supreme Court had upheld the Delhi High Court’s direction allowing provisional release of goods upon payment of 30% of the differential duty.

Without going into the merits of the petitioner’s claim, the Court stated that it is the responsibility of the authorities to assess the matter in accordance with law, considering the precedents. The Court, therefore, directed the petitioner to submit a fresh representation within one week, clearly seeking provisional release of the goods.

The Customs Department has been ordered to pass a reasoned order within four weeks thereafter, after taking into account the Delhi High Court’s judgment in Navshakti Industries Pvt Ltd vs. Commissioner of Customs, Delhi, which was affirmed by the Supreme Court, and also considering Regulation 2 of the Customs (Provisional Duty Assessment) Regulations, 2011.

Accordingly the petition was disposed of.

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