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Tribunal Adjusts Bank Guarantee for Duty Exemption Appeal The Tribunal upheld the Provisional Release Orders but adjusted the Bank Guarantee amounts. It found the appellant's arguments regarding duty exemption ...
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Tribunal Adjusts Bank Guarantee for Duty Exemption Appeal
The Tribunal upheld the Provisional Release Orders but adjusted the Bank Guarantee amounts. It found the appellant's arguments regarding duty exemption and tariff values valid, ordering a bond based on tariff value and a Bank guarantee for 20% of applicable duties. The Tribunal considered the goods' perishable nature, ongoing investigations, and past duty clearance instances under the same notification, leading to a re-calculation of the bond amount.
Issues: Challenge to Provisional Release Orders based on high Bank Guarantee amounts.
Analysis: The case involves appeals filed against Provisional Release Orders passed by the Commissioner of Customs, Kolkata, concerning the import of Refined Palmolein Oil from Bangladesh under Notification No. 99/2011Customs. The Directorate of Revenue Intelligence seized the goods, suspecting a violation of SAFTA Provisions. The Commissioner allowed provisional release subject to executing a bond and Bank guarantee. The appellant challenged the high Bank Guarantee amounts, arguing for a re-determination based on applicable tariff values. The appellant contended that the goods originated from Bangladesh, met SAFTA conditions, and should be granted duty-free exemption. They also argued that the bond and Bank Guarantee should be based on tariff values, not transaction values. The Commissioner justified the orders based on CBEC circular 35/2017. The Tribunal noted the certificates supporting the duty exemption claim but acknowledged ongoing investigations by the DRI. Considering the perishable nature of the goods, provisional release was necessary. The Tribunal found the transaction value declared in the Bills of Entry higher than the tariff value, suggesting a re-calculation of the bond amount. Regarding the Bank guarantee, the Tribunal observed no evidence of document forgery and past instances of duty clearance under the same notification. Thus, the Tribunal ordered a bond for 100% of the goods' value based on tariff value and a Bank guarantee for 20% of applicable duties.
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