ALO Law Office- IDT Tax I Arbitration I Litigation
Date: 22.09.2025
CESTAT Delhi Sets Aside Non-Speaking Order on Provisional Release
This Article has been written by Shri Ravi Shekhar Jha, Advocate based in New Delhi. The views expressed are based on his interpretation of the law. He can be reached at his email id intelconsul@gmail.com or on his Mobile +91-9999005379.
In a significant ruling, the Customs, Excise & Service Tax Appellate Tribunal (CESTAT), New Delhi, has set aside the provisional release order issued by the Commissioner of Customs, Indore, in the case of Rudras Overseas. The case highlights the importance of adhering to procedural requirements under Section 110A of the Customs Act, 1962, and ensuring transparency in decision-making processes. โ
Background
Rudras Overseas, an importer based in Indore, filed a Bill of Entry on November 23, 2019, for a shipment of nutrition supplements. โ Customs duty of Rs. โ 7,53,643/- was paid, but the goods were detained by the Directorate of Revenue Intelligence (DRI) for examination. โ Concerned about the perishable nature of the goods, the appellant applied for provisional release under Section 110A of the Customs Act on December 26, 2019. โ During the investigation, the appellant deposited Rs. โ 10 lakh as requested. โ
On April 27, 2020, the Assistant Commissioner issued a communication stating that the goods could be provisionally released upon execution of a bond worth Rs. โ 86,22,915/- and furnishing a bank guarantee/security of Rs. โ 1,38,19,048/-. However, the appellant challenged this order, claiming it lacked reasoning and transparency.
Source: CESTAT Delhi
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