2011 (3) TMI 470

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....nexure-Y by virtue of which after seizing goods, Customs Authorities agreed to release the same on certain conditions. 3. Shortly stated facts are as follows : 3.1 The petitioners in the present case, imported beetle-nuts in 32 different containers which arrived at Kandla port. In the past also, petitioners had imported beetle-nuts declaring them to be of origin of Srilanka and thereby claiming exemption of 100% on the import duty by virtue of notification No. 26/2000 dated 1-3-2000. It is not in dispute that past consignments were released either finally or provisionally without insisting on payment of any import duty at that stage. 3.2 In case of present consignments, 12 containers arrived at Kandla port with respect to ....

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....o not want to file any document which is incorrect. However, clearing of the material is of utmost importance. Please therefore, help us and guide us in the matter." 3.4 There are subsequent letters of the petitioners also on record essentially conveying to the Customs Department that petitioners under such controversial circumstances, do not wish to, at this stage, claim duty exemption but seek clearance of goods on payment of full duty under protest. 4. There appears to be some confusion with respect to what declaration the petitioner should have made under such circumstances. On one hand stand of the petitioners is that goods originated from Srilanka. However, for the sake of early clearance of goods they were prepared to pay....

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....rity. In the present case, respondents have asked for bank guarantee of Rs. 3 crores which is way beyond value of the goods. 6.1 Counsel further submitted that in any case seizure of 20 containers is illegal. There was no mis-declaration or attempt on part of the petitioners to seek exemption from import duty. He relied on provision of Sections 110 and 111 of the Customs Act, to contend that such seizure is unauthorised. 6.2 Counsel further pointed out that replies fled by the respondents linking the conditions of previous clearance of the goods is wholly impermissible. Previous goods were released either provisionally or on final assessment. Such provisional or final assessments have not been reopened. No show cause notices hav....

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....he circumstances, we do not find that any condition should be attached on clearance of these goods such as additional bond or security in form of bank guarantee. On the condition that petitioners pay full import duty, if they so chose, under protest, such goods can be cleared subject to further proceedings between the parties. 10. With respect to remaining 12 containers covered in seizure panchnama dated 4-1-2011, we find that in view of facts on record it would be open for the Customs Authorities to insist that the petitioners pay full import duty and also give bond for the entire amount of value of the goods, 25% of which may be in form of bank guarantee as envisaged in circular No. 686/2/2003 dated 2-1-2003. However, to permit the ....