2016 (3) TMI 427 - HC - Customs

High Court allows bank guarantees for seized goods pending appeal before CESTAT.

Hi Tan Exports Through Its Proprietor, B.V. Leather Through Its Partner Versus Commissioner of Customs (Exports)

The High Court allowed the Petitioners to furnish bank guarantees for the redemption fine and penalty to enable the release of seized goods pending appeal ... Writ petition - Seeking release of goods - Appeals pending before the CESTAT - Petitioners are willing to furnish bank guarantees for the entire amount of redemption fine and penalty to enable the goods to be released - Held that:- upon each of the Petitioners furnishing a bank guarantee in favour of the Department, for the entire amount of redemption fine and penalty as ordered by the Order-in-Original dated 5th February 2015, the goods in question shall be released to the respective Petitioners. - Decided in favour of petitioner Issues: Release of goods pending appeal before CESTAT, furnishing of bank guarantees, expedited hearing of appeals.Release of Goods Pending Appeal:The judgment pertains to two writ petitions filed by the Petitioners seeking the release of goods while their appeals are pending before the CESTAT. The Petitioners had previously filed an appeal before the Commissioner of Customs (Appeals) against an Order-in-Original permitting the withdrawal of goods on payment of redemption fine and penalty. The Commissioner of Customs (Appeals) set aside the Orders-in-Original, leading the Department to appeal before the CESTAT, which stayed the order of the Commissioner of Customs (Appeals) dated 17th June 2015. The High Court, considering that the goods in question, finished leather, had been seized for over a year, allowed the Petitioners to furnish bank guarantees for the entire amount of redemption fine and penalty to enable the release of the goods to them.Furnishing of Bank Guarantees:The Court, after hearing the submissions from both parties, directed the Petitioners to each furnish a bank guarantee for the total amount of redemption fine and penalty as ordered by the Commissioner of Customs. Upon compliance with this directive, the goods in question would be released to the respective Petitioners. This decision was made with the understanding that it would be subject to any further orders passed by the CESTAT while disposing of the Department's appeals.Expedited Hearing of Appeals:During the proceedings, the counsel for the Department requested the Court to direct the CESTAT to expedite the hearing of the appeals. While the Court did not explicitly order an expedited hearing, the judgment implied that releasing the goods to the Petitioners with the bank guarantees was the appropriate course of action considering the circumstances. The judgment concluded by disposing of the writ petitions in the terms mentioned, with the directive for the Petitioners to provide bank guarantees for the redemption fine and penalty for the release of the goods, subject to further orders from the CESTAT.