2026-VIL-352-CESTAT-AHM-CU
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CUSTOMS CESTAT Cases

Customs - Provisional release of seized goods - Appellant imported Distillate Marine Oil classifying it under CTH 2710 19 61 of the Customs Tariff Act - Department alleged that the goods contained diesel or High Flash High Speed Diesel (HFHSD) and were to be classified under CTH 2710 19 49. The goods were seized under Section 110 of the Customs Act based on test reports indicating the goods did not meet the parameters for Distillate Marine Fuel under IS 16731, particularly the cloud point - Whether the seizure of goods solely on the basis of deviation in the cloud point parameter, which is not a mandatory specification for Distillate Marine Fuel, is justified - HELD - The seizure of goods solely on the basis of deviation in the cloud point parameter is not justified. The cloud point is relevant only for the specific end-use and climatic conditions, and does not determine the classification of the goods. The Hon'ble Gujarat High Court in Aparajita Energy and Noya Infrastructure cases had held that the cargo cannot be seized merely on the basis of cloud point parameter, as it depends on the end-use and climate - The conditions imposed by the Commissioner of Customs for provisional release, including furnishing bank guarantees and end-use undertakings, are not sustainable. The traders shall only be required to file an end-use certificate before the Customs authority, without any requirement of bank guarantees or onerous conditions. The appellant cannot be discriminated and should be granted provisional release on similar terms as other similarly placed importers - The conditions imposed by the Commissioner of Customs for provisional release are set aside. The appellant is directed to file an end-use certificate before the Customs authority for provisional release of the goods. The bank guarantees furnished by the appellant shall be discharged - The appeal is allowed
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