Tribunal directs acceptance of bank guarantee for unpaid duty, orders release of goods within 15 days.

The Tribunal allowed the miscellaneous application, directing the Commissioner to accept the bank guarantee for 100% of the unpaid differential duty after adjusting the deposit already made by the applicant. The provisional release of goods was ordered to be completed within 15 days of the decision.

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Issues:
Application for directions to Adjudicating Authority under Rule 41 of CESTAT Procedure Rules, 1982 for execution of bank guarantee for provisional release of seized goods.

Analysis:
The applicant filed a miscellaneous application seeking directions to the Adjudicating Authority to consider the Rs. 35 Lakh already deposited for the execution of a bank guarantee for the provisional release of seized goods. The department denied the request, citing a previous order passed by CESTAT in respect of other assessees. However, the Tribunal had revised the bank guarantee amount for the present applicant and other parties in a previous order, requiring 100% coverage of the differential duty. The applicant requested the department to reduce the amount already deposited from the bank guarantee requirement, which was not allowed, leading to the present application.

The Tribunal considered the issue and referred to a previous order where it was decided that the bank guarantee should cover only the unpaid amount after considering the deposit made by the applicant during the investigation related to the seizure of goods. The Tribunal found that the deposit was connected to the seizure of goods and not towards any past liability, as no supporting evidence was provided by the Revenue to prove otherwise. Since there was no show cause notice issued or confirmed demand for past liability, the amount deposited could not be considered part of any past liability. Therefore, the Tribunal directed the Commissioner to accept the bank guarantee for 100% of the unpaid differential duty after adjusting the deposit already made, and to release the goods provisionally within 15 days of the order.

In conclusion, the miscellaneous application was allowed, and the respondent Commissioner was directed to accept the bank guarantee for 100% of the unpaid differential duty after adjusting the deposit already made by the applicant, with the provisional release of goods to be done within 15 days as discussed in the order.

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