Court dismisses writ petition challenging bank guarantee order under Customs Act, 1962. Pursue statutory appeal.

The court dismissed the writ petition challenging an order requiring the provision of a bank guarantee for the release of a vessel under the Customs Act, 1962. The court held that since the order was appealable under Section 129A(1)(a) of the Act, the petitioner must pursue the statutory remedy of appeal rather than seeking relief through a writ petition. The petitioner was granted liberty to appeal, and the Appellate Tribunal was directed to expedite the appeal process, with all contentions to be kept open. The petition was ultimately disposed of, concluding the legal proceedings.

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Issues:
Challenge to order directing provision of security in the form of a bank guarantee for the release of a vessel under the Customs Act, 1962.

Analysis:
The judgment delivered by H.G. Ramesh, J. pertains to a writ petition challenging an order dated 03.07.2012 that directed the petitioner to furnish security in the form of a bank guarantee with an auto-renewal clause amounting to Rs.14,00,00,000 for the provisional release of a vessel. The respondent's counsel argued that the order in question is appealable under Section 129A (1)(a) of the Customs Act, 1962. Upon examining the provisions of the Act, it was established that the impugned order is indeed appealable. Citing the Supreme Court's decision in United Bank of India v. Satyawati Tondon [AIR 2010 SC 3413], it was decided that since the petitioner has a statutory remedy of appeal available, the writ petition cannot be entertained. The petitioner was granted liberty to avail of the statutory remedy of appeal under Section 129(A) (1)(a) of the Act as per the law.

Furthermore, considering the urgency expressed by the petitioner's Senior Counsel, the judgment directs the Appellate Tribunal to expedite the appeal process and dispose of the appeal within three weeks from the date of filing, subject to the removal of any defects. It was emphasized that all contentions raised by both parties are to be kept open. Ultimately, the petition was disposed of, indicating the conclusion of the legal proceedings in this matter.

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