Madras High Court
M/S.Ambaji International vs The Addl. Commissioner Of Customs on 23 September, 2025
Author: N. Anand Venkatesh
Bench: N. Anand Venkatesh
WP No. 28692 of 2025
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED: 23-09-2025
CORAM
THE HONOURABLE MR JUSTICE N. ANAND VENKATESH
WP No.28692 of 2025
M/s.Ambaji International
No.7, Second Lane, Mint Street,
Sowcarpet, Chennai-600 079 rep.by its
Authorized Signatory Mr.Gatmal Petitioner
Vs
The Addl. Commissioner of Customs
(SEZ-FTWZ)
Preventive Commissionerate
No.60, Rajaji Salai, Customs House
Chennai 600 001 Respondent
Petition filed under Article 226 of the Constitution of India, praying for
issuance of a Writ of Certiorarified Mandamus, to call for records connected
with the impugned Provisional Release Order dated 15.07.2025 in F.No.GEN/
ADJ/ Misc/301/2025-SEZ-FTWZ issued by the Respondent herein and to
quash the same to the extent of condition specified at para 1 and 3 of the said
impugned Provisional Release order dated 15.07.2025, for the purpose of
granting provisional release of the seized goods covered under Bill of Entry
No.7970764 dated 24.01.2025 and consequently to modify the above said
condition for the purpose of provisional release of the said goods in terms of the
ruling of the Hon'ble Apex Court in the case of M/s.Navshakti Industries-2011
(269) ELT (A-146) (SC) r/w the Customs (Provisional Duty Assessment)
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WP No. 28692 of 2025
Regulations, 1963 and also in terms of the past contemporaneous clearance of
the very same goods imported by the petitioner concern, which goods
admittedly came to be assessed and cleared by proper officer of customs.
For Petitioner : Mr.S.Baskaran
For Respondent : Mr.Sai Srujan Tayi
Senior Standing Counsel
ORDER
This writ petition has been filed challenging the impugned Provisional
Release Order dated 15.07.2025 issued by the respondent to the extent of
condition specified at para 1 and 3 of the said impugned Provisional Release
order dated 15.07.2025, for the purpose of granting provisional release of the
seized goods covered under Bill of Entry No.7970764 dated 24.01.2025 and
consequently to modify the above said condition for the purpose of provisional
release of the said goods.
2. The petitioner had imported goods which are 'PVC Coated Fabric' vide
the subject bill of entry and the goods were moved to the Special Economic
Zone unit situated at Nandiyambakkam, Chennai. The petitioner had
approached the respondent for clearance of the goods from the Special
Economic Zone unit. The petitioner was informed that the DRI officials have
initiated investigation and only after obtaining the test report, a decision would
be taken for release of the goods. Accordingly, the DRI detained the goods vide
the panchanama dated 11.02.2025 covered by the subject bill of entry. Since the
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various representations given by the petitioner to the authorities for provisional
release of the goods evoked no response, the petitioner filed a writ petition in
W.P.No.15947 of 2025 seeking for a direction to the authorities to consider their
case for provisional release of goods and this Court, by order dated 02.06.2025,
directed the authorities to pass final orders on the representation submitted by
the petitioner, in the light of the judgment of the Apex Court in the case of M/s
Navshakti Industries and also after giving due consideration to Regulation 2 of
the Customs (Provisional Duty Assessment) Regulations, 2011, within a period
of four weeks.
3. Pursuant to the above order, the respondent has issued the impugned
provisional release order dated 15.07.2025 directing the petitioner to furnish
bank guarantee to the tune of Rs.11,50,000/- and a bond equivalent to the re-
determined value of the goods, which is Rs.40,00,000/-. Aggrieved by the same,
the present writ petition has been filed before this Court.
4. The learned counsel for petitioner submitted that the issue involved in
the present case is squarely covered by the earlier order passed by this Court in
W.P.No.32472 of 2025 dated 18.09.2025. The learned counsel submitted that the
conditions that were imposed by this Court in that order can be applied to the
petitioner also and the petitioner will abide by the same.
5. The learned Senior Standing Counsel appearing on behalf of the
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respondent vehemently opposed the relief sought for by the petitioner, on the
ground that the authority has re-determined the value of the goods to the tune of
Rs.40,00,000/- and if at all the petitioner wants the release of the goods, the
petitioner has to either pay the re-determined duty for the re-determined value
or furnish a bank guarantee as has been directed by the respondent to the tune of
Rs.11,50,000/-. The learned counsel therefore submitted that the impugned
provisional release order that has been put to challenge in the present writ
petition does not warrant the interference of this Court.
6. This Court has carefully considered the submissions made by the
learned counsel on either side and the materials available on record.
7. The respondent has exercised jurisdiction under Section 110A of the
Customs Act, 1962. The respondent has taken into consideration the re-
determined value of the goods under the subject bill of entry to the total tune of
Rs.40,00,000/- and the petitioner is supposed to pay the re-determined duty,
which comes to Rs.11,50,000/-. It is stated that the matter is at the stage of
issuance of notice to the petitioner and the adjudication is pending. Under such
circumstances, this Court must only see as to whether the conditions imposed
by the respondent in the impugned provisional release order require the
interference of this Court.
8. The above issue was dealt with by this Court in W.P.No.32472 of 2025
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and by order dated 18.09.2025, this Court held as follows:-
“12. This Court is not dealing with the merits of the case
since what has been put to challenge is the provisional
release order and that too questioning some of the onerous
conditions. While undertaking this exercise, it will suffice to
take note of some of the earlier orders passed by this Court.
One such order was passed in the case of Green Line Vs.
Commissioner of Customs, Chennai-IV, reported in 2016
(340) E.L.T 140 (Mad). That was also a case, which
involved differential duty of non prohibited goods. Similar
conditions were imposed and the said writ petition was
disposed of by this Court in the following terms:
“
8. In the light of the above discussions, the
Writ Petition is disposed of with the following
directions:
(i) The petitioner is directed to remit the entire
duty as assessed by them;
(ii) The petitioner is directed to pay 50% of the
differential duty which has been arrived at by the
Department as Rs. 22.72 lakhs;
(iii) The petitioner is directed to execute a bond
for the remaining amount to the satisfaction of the
respondents.
(iv) The petitioner shall execute an indemnity
bond stating that in the event of Shri.S.Ariya
raising any claim over the goods or concerning
the use of IEC code issued in favour of M/s. Green
Line, the petitioner Mr.Mohamed Kalith alone
would be fully responsible for the same and no
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liability can be fastened on the respondent
Department and the indemnity bond should be
furnished in the form approved by the
respondents.”
13. This order of the learned Single Judge was subsequently
confirmed by the Hon'ble Division Bench of this Court in
W.A.No.1243 of 2016 dated 25.10.2016. It is also relevant
to take note of a Division Bench order of this Court in the
case of Commissioner of Customs and Others vs. Sri
Venkateshwara Paper Boards Rep.by its General
Manager Mr.L.Barath reported in 2022 (379) E.L.T 310
(Mad), which involved prohibited goods and the writ
petition was disposed of in the following terms:
“32. We have perused the order dated 29.12.2020
permitting provisional release of the cargo,
subject to the following conditions:
(a) execution of a bond for Rs.34,65,334/-,
(b) production of cash security/bank guarantee for
Rs. 12,12,867/- towards redemption fine and
penalty, and
(c) payment of duty of Rs. 9,43,411/-.
33.We find nothing unreasonable about
conditions (a) and (c), however condition (b) is
concerned directing the Importer to furnish Bank
guarantee/cash security towards redemption fine
and penalty would be harsh as the show-cause
notice is yet to be adjudicated. Therefore, we
modify the condition (b) alone by directing the
Importer to execute the bond for Rs. 12,12,867/-.
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34. On compliance of the execution of the bond
for the amount mentioned in conditions (a) and
(b) supra and payment of duty as mentioned in
condition (c), the Revenue shall permit
provisional release of the cargo within seven (7)
days therefrom, which shall be subject to the
result of the adjudication of the show-cause
notice.”
14. In the case in hand, the goods that are involved are
Viscose Knitted Fabric, which according to the Department
has been misclassified and undervalued. Therefore, the
Department is proceeding further with the adjudication
proceedings. Pending the same, the impugned provisional
release order has been passed.
15. The conditions that have been imposed in the
provisional release order are as follows:
Specific Conditions:
1. The importer shall file the DTA Bill of Entry
for provisional release for the re-determined value
and shall pay re-determined duty as mentioned in
seizure memo and / or NOC issued by the DRI, HQ,
New Delhi. The Bill of Entry shall be assessed in
view of pending investigation.
2. The importer shall execute a Bond for
Rs.91,00,000/- (Rupees Ninety One Lakhs only)
3. The importer shall furnish a Bank
Guarantee(BG) for Rs.22,00,000/- (Rupees Twenty
Two Lakhs only)
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16. Taking into consideration the facts and circumstances
of the case and considering the grounds raised in the writ
petition and also taking into consideration of the earlier
orders passed by this Court, this Court is inclined to modify
the conditions imposed in the provisional release order as
follows:
a) The petitioner is directed to remit the entire duty as
declared by them.
b) The petitioner is directed to pay 50% of the
differential duty for the total value arrived at by the
Department at Rs.90,95,299.23/-
c) The petitioner shall execute a bond for a sum of
Rs.91,00,000/-(Rupees Ninety One Lakhs only) and
d) The petitioner shall also execute a bond for a sum
of Rs.22,00,000/- (Rupees Twenty Two Lakhs only) instead
of Bank Guarantee. On compliance, the goods shall be
released by the respondents within a period of seven days
from the date of compliance of the conditions.”
9. The above yardstick can be applied in the present case also and hence,
this Court is inclined to modify the conditions imposed in the impugned
provisional release order issued by the respondent, as follows:-
a) The petitioner is directed to remit the entire duty as
declared by them;
b) The petitioner is directed to pay 50% of the
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differential duty for the total value arrived at by the
Department to the tune of Rs.40,00,000/-;
c) The petitioner shall execute a bond for a sum of
Rs.40,00,000/-(Rupees Forty Lakhs only) and
d) The petitioner shall also execute a bond for a sum
of Rs.11,50,000/- (Rupees Eleven Lakhs Fifty Thousand
only) instead of Bank Guarantee. On compliance, the goods
shall be released by the respondent within a period of seven
days from the date of compliance of the conditions.
10. This writ petition is disposed of in the above terms. Consequently,
W.M.P.Nos.32129 & 32130 of 2025 are closed. No costs.
23-09-2025
Index:Yes/No
Speaking/Non-speaking order
Internet:Yes
Neutral Citation:Yes/No
ss
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To
1. The Addl. Commissioner of Customs
(SEZ-FTWZ)
Preventive Commissionerate
No.60, Rajaji Salai
Customs House
Chennai 600 001
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N.ANAND
VENKATESH J.
ss
23-09-2025
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