Exemption from Additional Duty of Customs was declined, but goods were released pending adjudication against bank guarantee.

A claim for exemption from Additional Duty of Customs for immediate assessment of Bills of Entry under Notification No. 30/2004-CE was declined, following earlier similar orders. The exemption-based assessment request was therefore rejected. The goods were nevertheless directed to be released pending adjudication on the condition that the importer furnish a bank guarantee for the entire value of the Additional Duty of Customs to the satisfaction of the authority concerned, and keep it alive until adjudication was completed. Release was to follow forthwith on furnishing the guarantee. The petition thus succeeded only to the extent of obtaining conditional release of the goods.

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Issues: (i) Whether the petitioner was entitled to assessment of the Bills of Entry by allowing exemption from Additional Duty of Customs under Notification No. 30/2004-CE dated 09.07.2004. (ii) Whether the goods were liable to be released pending adjudication and, if so, on what conditions.

Issue (i): Whether the petitioner was entitled to assessment of the Bills of Entry by allowing exemption from Additional Duty of Customs under Notification No. 30/2004-CE dated 09.07.2004.

Analysis: The request for assessment with the claimed exemption was declined in view of earlier similar orders of the Court. The exemption claim under the notification was not accepted for immediate assessment of the Bills of Entry.

Conclusion: The claim for exemption from Additional Duty of Customs for assessment of the Bills of Entry was rejected.

Issue (ii): Whether the goods were liable to be released pending adjudication and, if so, on what conditions.

Analysis: The Court directed release of the goods subject to the furnishing of a bank guarantee for the entire value of the Additional Duty of Customs to the satisfaction of the authority concerned, with the guarantee to remain alive until adjudication was completed. Release was to follow forthwith on furnishing the guarantee.

Conclusion: The goods were directed to be released on furnishing a bank guarantee for the entire value of the Additional Duty of Customs.

Final Conclusion: The petition succeeded only to the extent of obtaining conditional release of the goods, while the request for exemption-based assessment was declined.

Ratio Decidendi: A claim for exemption from Additional Duty of Customs may be declined while directing conditional release of goods pending adjudication on furnishing security to protect the revenue.

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