Smart Impex Solutions Vs Commissioner of Customs (Chennai II) (Madras High Court)
Summary: The Madras High Court considered a writ petition filed by M/s.SMART IMPEX SOLUTIONS seeking provisional release of two consignments of secondhand Highly Specialized Equipments comprising various models of Digital Multifunction Print and Copying Machines. The petitioner stated that the consignments contained quantities exceeding the declared invoice quantities and sought provisional release under Section 110A of the Customs Act, 1962, on execution of a Simple Bond for 100% of the enhanced value and payment of applicable total GST on the enhanced value, with Customs Duty stated to be exempted. The valuation had been undertaken by Chartered Engineers M/s.Supreme Techno Associates Pvt. Ltd. in their inspection reports and valuation certificates.
The petitioner relied upon the common order of the Madras High Court dated 10.07.2025 in W.P. Nos.29418 of 2024 etc., batch, submitting that the issue of provisional release of similar goods had already been considered and the importer’s request under Section 110A had been directed to be considered.
The respondents opposed the request by relying upon an amendment dated 10.03.2026 to the Notification dated 01.07.2021. According to the respondents, the amendment provided an exemption for Highly Specialized Equipment satisfying prescribed criteria, subject to a specific exemption issued by the Ministry of Electronics and Information Technology under paragraph 2 of the Gazette Notification dated 18.03.2021, as amended on 26.04.2023, and provided that the equipment was manufactured or imported in quantities of less than 100 units per model per year. The respondents submitted that the amendment came into force with effect from 15.06.2026. They further contended that, for considering the petitioner’s claim, the date of the Bills of Lading would be considered as provided under Section 15 of the Customs Act, 1962.
