Customs Circular Violating S. 110A Held Void: Delhi HC Orders Provisional Release of Imported Multi-Functional Printer and Photocopier Machine

The Delhi High Court declared Customs Circular No. 35/2017-Cus void, as it contravened Section 110A of the Customs Act, 1962, which permits provisional release of seized goods upon conditions. The case involved M/s Nageswara Trade, whose consignment of multi-functional printers and photocopier machines was seized by Customs authorities. The petitioner argued that the seizure memo was defective and that the reliance on the circular to deny provisional release was unjustified. The court noted that similar devices were being imported across the country and that other High Courts had allowed provisional release of identical consignments. Rejecting Customs' reliance on the circular, the court emphasized that executive circulars cannot override statutory provisions. Consequently, the court ordered the provisional release of the goods upon the deposit of 50% of the applicable duty and the furnishing of a bond for the balance, including any penalties.