Additional Duty of Customs exemption refused, while imported goods were released on furnishing a bank guarantee pending adjudication.

Exemption from Additional Duty of Customs under Notification No. 30/2004-CE was refused for assessment of the Bills of Entry, but the goods were ordered to be released on the petitioner furnishing a bank guarantee for the full Additional Duty of Customs, kept alive until adjudication was completed. The release was to follow immediately upon furnishing the guarantee. The document therefore records a rejected exemption claim and conditional interim release of imported goods on adequate 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 consequential release of the goods.

Analysis: The prayer for assessment of the Bills of Entry by allowing exemption from Additional Duty of Customs under Notification No. 30/2004-CE was declined. At the same time, in line with earlier orders of the Court in similar matters, 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 be kept alive until adjudication was completed, and release was to follow forthwith upon furnishing the guarantee.

Conclusion: The claim for exemption from Additional Duty of Customs was rejected, but the petitioner obtained release of the goods on furnishing a bank guarantee.

Final Conclusion: The writ petition resulted in rejection of the substantive exemption claim while granting conditional release of the imported goods.

Ratio Decidendi: A claim for exemption from Additional Duty of Customs may be refused while directing interim release of goods on adequate security, such as a bank guarantee, pending adjudication.

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