Prompt Release of Bond and Bank Guarantee Ordered by Court

The Court directed the respondent to release the petitioner's bond and bank guarantee of Rs. 43,27,338/-, provided during the provisional release of seized goods. Despite the petitioner fulfilling requirements and depositing fines and penalties as per Settlement Commission's orders, the respondent delayed the release. The Court emphasized prompt action, ordering the respondent to dispose of the matter within a week without adjournment due to lack of information on any writ petition challenging the Settlement Commission's orders. The writ petition and application were disposed of, safeguarding the petitioner's rights.

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Issues:
1. Release of bank guarantee by respondent.
2. Delay in releasing bond and bank guarantee despite settlement application.
3. Lack of information on writ petition challenging Settlement Commission's orders.

Analysis:
1. The petitioner filed a writ petition seeking direction to release the bank guarantee of Rs. 43,27,338/- provided at the time of provisional release of goods seized by the respondent due to suspected mis-declaration and under-invoicing. The goods were released after payment of duty, execution of bond, and providing the bank guarantee. The settlement application was filed before the Customs and Central Excise Settlement Commission under Section 127C (5) of the Customs Act, 1962, which directed the release of bond and bank guarantee upon payment of fine and penalty by the petitioner.

2. Despite the petitioner depositing the fine and penalty, the respondent did not release the bond and bank guarantee. The petitioner made several representations requesting the release, but the respondent failed to act. The senior standing counsel for the respondent expressed uncertainty about any writ petition challenging the Settlement Commission's orders. The Court, however, decided not to adjourn the matter due to lack of information and directed the respondent to dispose of the petitioner's representation within one week by way of a speaking order.

3. The lack of information on any writ petition challenging the Settlement Commission's orders should not delay the release of the petitioner's bond and bank guarantee. The Court emphasized the need for prompt action by the respondent in addressing the petitioner's representations and ordered the disposal of the matter within a week. The writ petition and application were disposed of with this direction, ensuring the petitioner's rights are protected without unnecessary delays.

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