Order date – 18 August 2022

Facts – 

• The Appellant, Hitesh Nagwani, imported one shipment of nutrition supplements dated 23.11.2019 and the customs duty of Rs.7,53,643/- was paid. However, before the goods could be cleared, the goods were examined by the Directorate of Revenue Intelligence, Indore and were detained under Panchnama dated 29.11.2019 which were subsequently seized vide seizure memo dated 26.12.2019 under section 110 of Customs Act, 1962 on the allegation of under valuation.
• During the course of premises search Indian currency of Rs.82,67,900/- and USD 5000 was found which were retained by the officer of DRI, IZU , Indore under Panchnama dated 28.11.19 alleging the same as sale proceed of the import of aforesaid goods by M/s. Rudra Overseas.
• The appellant filed an application dated 7.11.2020 for the provisional release of said seized currency followed by two reminders dated 15.11.2020 and 24.11.2020 requesting for its release. But there was no response.
• Aggrieved the appellant filed an appeal.

Issue – 

• Whether the rejection of request of importer for provisional release of seized currency amounting to Rs.82,67,900/- and USD 5000 is sustainable?

Order – 

• The Tribunal keeping into consideration section 110A and 2 (22) of Customs Act, held that statute has a provision permitting provisional release of the goods against certain security/ bond and as condition as may be deemed fit by the competent authority.
•  In addition, there also has been CBIC Circular No. 35 /2017 dated 16.8.2017 laying guidelines for provisional release of seized goods under section 110 of Customs Act, 1962, according to which there is no bar on provisional release of the Currency even if it is observed that no formal seizure order has been passed the same view was taken in J K.S. Air travels vs Chief Commissioner of Customs, Chennai-I.
• Basis above discussion, Tribunal held that it is clear that belief of the department about the impugned currency notes to be the sale proceeds of imported goods allegedly under-valued goods, but otherwise not alleged to be smuggled goods cannot, be a reason to deny the provisional release of the said currency.
• Therefore, the appeal allowed.