2026-VIL-1895-CESTAT-AHM-CU
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CUSTOMS CESTAT Cases

Customs - Conditions of provisional release - Section 110A of the Customs Act, 1962 - The Appellant imported distillate marine oil declared for industrial use. The test report stated that the sample was most akin to a restricted grade of diesel but had a flash point below the prescribed minimum, and the goods were seized under Section 110. The Commissioner held that the goods could not be treated as the restricted grade at that stage and ordered provisional release under Section 110A. The release was subject to an end-use bond, maintenance of batch-wise records, a bond for the full assessable value and a bank guarantee for a percentage of the assessable value. The Appellant complied under financial hardship due to mounting terminal charges, and the goods were provisionally released. The Appellant sought modification of the conditions and discharge of the bank guarantee, relying on decisions in the cases of similarly situated importers. The Respondent justified the order - Whether the bank guarantee and the other conditions imposed for provisional release are liable to be set aside - HELD - In a recent matter concerning a similar product, the Tribunal considered the same test reports and clarifications of the laboratory. The test reports were not definitive as to whether the distillate oil was diesel or the restricted grade. Diesel fraction is a broad category including the restricted grade and other distillate oils, and cloud point cannot be the sole basis for seizure of the cargo. The condition of furnishing a bank guarantee is against the directions given in the cases of identical goods and is liable to be set aside. The end-use certificate has already been produced on record, and any remaining certificate shall be produced before the authorities - The bank guarantee shall be returned on production of the end-use certificate and execution of a bond - The appeal is allowed
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