Additional Duty of Customs exemption denied, but imported goods allowed conditional release against bank guarantee pending adjudication

Exemption from Additional Duty of Customs under Notification No. 30/2004-CE was declined for assessment of the Bills of Entry. Even so, the imported goods were directed to be released on the petitioner furnishing a bank guarantee for the full additional duty amount, to the satisfaction of the authority, and keeping it alive until adjudication was completed. Upon furnishing the guarantee, release was to follow forthwith. The practical effect was denial of exemption while granting only conditional release of the goods against security pending adjudication.

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Issues: Whether the petitioner was entitled to assessment of the Bills of Entry by granting exemption from Additional Duty of Customs under Notification No. 30/2004-CE, and the consequential release of the goods.

Analysis: The prayer for assessment by allowing exemption from Additional Duty of Customs under Notification No. 30/2004-CE was declined. At the same time, in view of similar orders passed in other writ petitions, the goods were directed to be released on the petitioner furnishing a bank guarantee for the entire value of the Additional Duty of Customs to the satisfaction of the authority concerned, to be kept alive until adjudication was completed. Upon furnishing the bank guarantee, release of the goods was directed forthwith.

Conclusion: The claim for exemption from Additional Duty of Customs was rejected, but release of the goods was permitted against bank guarantee, leaving the assessee only partial relief.

Final Conclusion: The writ petition resulted in denial of exemption while granting conditional release of the imported goods against security.

Ratio Decidendi: Where exemption from Additional Duty of Customs is not granted, the goods may still be directed to be released conditionally on furnishing adequate security pending adjudication.

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