Customs exemption claim rejected, but goods ordered released against bank guarantee pending adjudication.

The court declined assessment of the Bill of Entry by extending exemption from Additional Duty of Customs under Notification No. 30/2004-CE, so the exemption claim was rejected. It nevertheless directed release of the goods against a bank guarantee for the full value of the Additional Duty of Customs, to remain alive until adjudication is completed, and made the release subject to the orders in the connected appeals. The petitioner therefore obtained only partial relief.

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

Analysis: The relief for assessment of the Bill of Entry by extending the claimed exemption was declined. At the same time, the Court directed release of the goods against a bank guarantee for the full value of the Additional Duty of Customs, to be kept alive until completion of adjudication, and made the release subject to the orders of the Division Bench in the connected appeals.

Conclusion: The claim for exemption was rejected, but the goods were directed to be released on furnishing a bank guarantee, so the petitioner obtained only partial relief.

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