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of <h1>Court rules in favor of petitioner in bank guarantee dispute over custom duty, dismissing petition as infructuous.</h1> <h3>M/s M.V.S. Impex Versus Commissioner of Customs and another</h3> The Court found in favor of the petitioner, a Proprietorship concern, in a case involving the alleged illegal demand of a 100% bank guarantee for custom ... Import of consignment from Sri Lanka under the Incentive Scheme - grievance is that the consignment has not been released for the last two months on the alleged ground of verification of certificate of place of region while illegally demanding 100% bank guarantee of the proposed custom duty - HELD THAT:- At the time of resumed hearing today, counsel for the petitioner submits that the present writ petition has become infructuous as the detained goods have since been released without seeking bank guarantee. Petition dismissed as infructuous. Issues:1. Alleged illegal demand of 100% bank guarantee for custom duty on consignment imported under Incentive Scheme.2. Delay in releasing consignment for verification of certificate of place of region.3. Lack of substantiation for doubting the country of origin of imported goods.4. Petition becoming infructuous due to release of detained goods without bank guarantee.Issue 1: Alleged illegal demand of 100% bank guarantee for custom dutyThe petitioner, a Proprietorship concern, imported a consignment from Sri Lanka under the Incentive Scheme (Annexure P-1) which did not require payment of custom duty. The grievance arose when the consignment was not released for two months, and an illegal demand for a 100% bank guarantee for the proposed custom duty was made. The Court noted that the consignment was regularly imported from Sri Lanka, and there was no substantiation for doubting the country of origin of the goods. The Court directed the respondent to file an affidavit indicating the material available to doubt such consignments and the steps taken to ascertain the genuineness of the certificate of origin.Issue 2: Delay in releasing consignment for verificationThe consignment was withheld for two months for the alleged verification of the certificate of place of region. The petitioner raised concerns regarding the delay in releasing the goods without any valid grounds for the extended hold-up. The Court emphasized the need for the respondent to provide justification for the delay and the necessity of the steps taken by the Department to confirm the authenticity of the certificate of origin.Issue 3: Lack of substantiation for doubting country of originIn a connected writ, it was observed that there was no substantiation for doubting the country of origin of the imported goods, especially when similar consignments were regularly imported from Sri Lanka. The Court highlighted the importance of providing concrete evidence or material to support any doubts regarding the origin of the goods before imposing additional requirements such as a bank guarantee.Issue 4: Petition becoming infructuousDuring the resumed hearing, the petitioner informed the Court that the detained goods had been released without the need for a bank guarantee, rendering the present writ petition infructuous. Consequently, the petition was dismissed as infructuous due to the release of the goods without the requirement of the bank guarantee, resolving the initial grievance raised by the petitioner.This detailed analysis of the judgment addresses the issues related to the alleged illegal demand of a bank guarantee, delay in releasing the consignment, lack of substantiation for doubting the country of origin, and the subsequent dismissal of the petition as infructuous.
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