Court increases Bank Guarantee for seized goods release to prevent misuse, Petitioner must comply.

The High Court addressed a contempt petition for non-compliance with a CESTAT order on seized goods release. The Division Bench modified the order, requiring a Bank Guarantee of Rs. 10 crores for provisional release. The Supreme Court further increased the Bank Guarantee to Rs. 15 crores to prevent misuse. The Petitioner was instructed to furnish the enhanced Bank Guarantee for seized goods release. The court directed the Petitioner to comply with the Bank Guarantee requirement for provisional goods release, disposing of the contempt petition.

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Issues:
Non-compliance of CESTAT order regarding the release of seized goods. Modification of CESTAT order by Division Bench regarding the Bank Guarantee amount. Further modification of Bank Guarantee amount by the Supreme Court. Procedure for furnishing the enhanced Bank Guarantee and releasing the seized goods.

Analysis:
The High Court dealt with a contempt petition alleging non-compliance of a CESTAT order directing the release of seized goods. The CESTAT order required the appellant to provide a bond for the full value of the goods along with a Bank Guarantee of Rs. 1.25 crores. The Division Bench modified this order, allowing provisional release of certain goods upon furnishing a bond covering the entire value along with a Bank Guarantee of Rs. 10 crores. However, the Division Bench quashed the release direction for certain goods lacking proper documentation. The Supreme Court further modified the Bank Guarantee amount to Rs. 15 crores, emphasizing no misuse or illegal diversion of the released goods. The Petitioner was directed to furnish the enhanced Bank Guarantee at the office of the Principal Commissioner of Customs, following which the seized goods were to be released provisionally as per the CESTAT order.

The Petitioner had already provided a Bank Guarantee of Rs. 3.16 crores, which was to be returned, and a new Bank Guarantee of Rs. 15 crores was to be furnished as per the Supreme Court's direction. The Directorate of Revenue Intelligence confirmed the procedure for furnishing the enhanced Bank Guarantee and releasing the seized goods. The High Court, considering the Supreme Court's order, directed the Petitioner to provide the Bank Guarantee of Rs. 15 crores to the Competent Authority for the release of the seized goods as per the CESTAT order. The contempt petition was disposed of based on these terms, allowing the Petitioner to comply with the Bank Guarantee requirement for the provisional release of the goods.

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