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of <h1>Court Upholds Customs Act Provisional Release Conditions, Modifies Bank Guarantee Quantum</h1> <h3>AKANKSHA SYNTEX PVT. LTD. Versus UNION OF INDIA</h3> AKANKSHA SYNTEX PVT. LTD. Versus UNION OF INDIA - 2013 (296) E.L.T. 178 (Bom.) Issues:Challenge to order of provisional release under Section 110A of the Customs Act, 1962 with specific conditions imposed.Detailed Analysis:Issue 1: Challenge to Order of Provisional ReleaseThe petitioners contested an order by the Commissioner of Customs granting provisional release under Section 110A of the Customs Act, 1962. The order included conditions such as payment of differential duty, furnishing a bond, securing a Bank Guarantee, and providing an undertaking regarding the goods' identity during adjudication/prosecution.Issue 2: Interpretation of Section 110(2)The petitioners argued that if no notice to show cause is issued within one year of goods' detention, Section 110(2) mandates unconditional release. However, the Court explained that Section 110(2) requires the return of goods if no notice under Section 124(a) is given within six months of seizure, extendable by the Commissioner for another six months. The absence of a time limit in Section 124(a) does not affect the validity of a notice issued beyond six months.Issue 3: Conditions for Provisional ReleaseThe petitioners specifically challenged the requirement to furnish a Bank Guarantee as part of the provisional release conditions. The Court noted discrepancies in the Bank Guarantee amount demanded compared to the differential duty, citing guidelines from the Manual of C.B.E. & C. regarding Bank Guarantee limits. Allegations of serious fraud and malpractice influenced the decision to uphold the Bank Guarantee condition.Issue 4: Modification of Bank Guarantee QuantumConsidering the substantial amount already deposited with Customs authorities and the pending adjudication, the Court modified the Bank Guarantee requirement from 30% to 15% of the redetermined assessable value. The judgment directed the modification of the Commissioner's order accordingly.In conclusion, the petitions challenging the Commissioner's order were disposed of, with the modification of the Bank Guarantee quantum being the primary adjustment made. The judgment clarified the interpretation of relevant sections of the Customs Act and upheld the conditions for provisional release while making a specific alteration to the Bank Guarantee amount demanded.
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