2011 (7) TMI 224

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....bsp; 2. During the course of the hearing, counsel appearing on behalf of the Petitioner has, in view of the judgment of a Division Bench of this Court in Jayant Hansraj Shah v. Union of India1, urged a more restricted submission for relief. In the judgment of the Division Bench it has been held that it is only in a case where no provisional order has been passed for the release of seized goods and if no notice has been issued under Section 124(a) of the Customs Act, 1962 for confiscation of goods would Section 110(2) be attracted and the Department would be bound to release the goods. In the present case, it is an admitted position that by an order dated 24 May 2011, the Commissioner of Central Excise and Customs, SuratI has allowed prov....

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....ot exceed twice the amount of duty). The provisional clearance should be allowed as a rule and not as an exception. However, in the following situations, provisional release may not be resorted to:   (i) The prohibited goods whose import/export are not in the interest of the country;   (ii) imports which do not comply with the prescribed specifications/conditions/requirements of various Orders/Acts, (e.g. Those laid down under DGFT Notification Nos. 3 to 5/(RE2011)/1997-2002 dated 31.3.2001); Livestock Importation Act, 1898, Prevention of Goods Adulteration Act, 1954, etc.);   (iii) where gross fraudulent practices are noticed and it is viewed that release of the consignment may serious jeopardize further investigati....

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....orted junk material consisting of metal scrap and cheap ink/phenyl solutions. Money generated out of the illegal sale of diverted materials is alleged to have been routed through the hawala channel. Accordingly, by an order dated 7 February 2011 the Development Commissioner of the Surat SEZ suspended the letter of approval dated 30 August 2007 issued to the unit.   5. Having regard to the disclosures which have been made in the affidavit, it cannot be said that there is any breach of the guidelines contained in the Manual. The Petitioner, obviously, cannot rely on the guidelines contained in the Manual to the effect that the value of the bank guarantee shall not exceed twice the amount of duty since that part of the guidelines is no....