2010 (5) TMI 592

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....008 [2010 (253) E.L.T. 771 (Del.)] 2. The Appellants had imported newsprint under the Open General Licence. When the goods arrived at the port, they were finally assessed to duty which was paid by the Appellants and the goods cleared. 3. Subsequently, it appears that Respondents No. 2 and 3 received some information that the goods were being diverted for purposes other than newsprint. Acting on this information, the goods of the Appellants were seized in exercise of powers conferred by Section 111(o) the Customs Act, 1962. The Appellants then sought release of the goods on a provisional basis after their seizure and an order was passed by the Respondents on 9th January, 2008 apparently in exercise of power conferred by Secti....

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....ct, 1962 (52 of 1962), is not able to make a final assessment of the duty on the imported goods or the export goods, as the case may be, he shall make an estimate of the duty that is most likely to be levied hereinafter referred to as the provisional duty. If the importer or the exporter, as the case may be, executes a bond in an amount equal to the difference between the duty that may be finally assessed and the provisional duty and deposits with the proper officer such sum not exceeding twenty per cent of the provisional duty, as the proper officer may direct, the proper officer may assess the duty on the goods provisionally at an amount equal to the provisional duty." 6. According to learned counsel for the Appellants, since the ....

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....eminently reasonable and do not require any interference by this Court. 8. Section 111(o) and Section 110A of the Customs Act read as follows :- "111. Confiscation of improperly imported goods, etc. - The following goods brought from a place outside India shall be liable to confiscation : - (a) to (n)  xxx                      xxx                          xxx (o) any goods exempted, subject to any condition, from duty or any prohibition in respect of the import thereof under this Act or a....

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....re is no option but to permit the release of the goods of the Appellants on their furnishing a bond of 20% of the differential duty that is to say the duty claimed by the Respondents minus the duty already paid by the Appellants in the first instance. Condition No. (i) imposed by the order dated 9th January, 2008 would stand modified to that extent. 11. Insofar as the second condition is concerned (requiring the Appellants to furnish 25% of the value of the goods by way of a bank guarantee) we cannot overlook the fact that the goods were finally cleared by the Respondents after making an assessment in the first instance, and that the Appellants paid the entire duty on the goods as far back as in 2006. It is only thereafter, that is,....