TaxTMI 
TaxTMI 
2019 (10) TMI 337
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....ndent Nos.6 to 8. Oral Order (Per M. S. Sonak, J) Heard Mr. S. S. Kantak, learned Senior Advocate alongwith Mr. Parag Rao, for the Applicant (Fomento) in M.C.A. No.739 of 2019 and Ms. Asha Desai and Ms. Priyanka Kamat, learned counsel for the Respondents. 2. Heard Ms. Priyanka Kamat for the Applicant (Customs) in M.C.A. No.667 of 2019 and Mr. S. S. Kantak, learned Senior Advocate alongwith Mr. Parag Rao for the Respondent (Fomento). Ms. Asha Desai appears for the Directorate of Revenue Intelligence (DRI). 3. In M.C.A. No.739 of 2019, Fomento seeks discharge of bank guarantee dated 26.07.2019 and return of the same. There is an additional prayer that the Director of Fomento be relieved of the undertaking furnished to this Court on 29.11.....
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....was to be kept alive for a period of six months. 9. After some marginal delay, the vessel was brought back in the jurisdictional limits of Customs. Fomento then took out M.C.A. No.1052 of 2018 on 18.12.2018 seeking discharge of bank guarantee and undertaking. 10. Since, the hearing in main Writ Petition No.65 of 2018 had already concluded on 12.12.2018 and the matter was reserved for orders, M.C.A. No.1052 of 2018 was directed to be taken up alongwith the main matter. 11. Writ Petition No. 65 of 2018 was disposed of by judgment and order dated 05.04.2019. The seizure was quashed and set aside. However, since the bank guarantee was to remain alive till 29.05.2019, the same was directed to operate. According to us, this later direction was....
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....s a Miscellaneous Civil Application of the Commissioner of Customs for extension of a Bank Guarantee furnished by the respondents. 2. Learned Counsel for respondent no.1, after taking instructions from his clients, states that the respondents shall execute a fresh Bank Guarantee on the same terms as the old Bank Guarantee, referred to in the prayer clause of the Miscellaneous Civil Application, valid up to 15/07/2019. Liberty to the respondents to apply for variation of the order dated 22/04/2019. All rights and contentions of the parties on merits in that behalf are kept open. Registry is directed to return the existing Bank Guarantee dated 29/11/2018 to respondent no.1 which anyway has expired. 3. Miscellaneous Civil Application is di....
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....l beyond the jurisdiction of Customs, even though, the seizure order had not been set aside. He submits that once the vessel was brought within the jurisdiction of the Customs, the bank guarantee was required to be discharged. He submits that Fomento has instituted an appeal before CESTAT after making pre-deposit of 7.5% of the demand. He relies upon Circulars dated 16.09.2014 and 10.03.2017 issued by the Central Government, which provide that no coercive recovery should be made by Customs, pending appeals. He submits that seizure orders have already been set aside. He submits that Fomento cannot be placed in a position worse than what it was, when the seizure orders were yet to be set aside. He submits, on instructions, that Fomento will e....
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....rit Petition No.400 of 2019 in the first instance. This Court, merely accepted the statement on behalf of Customs that show cause notice would be disposed of by 29.05.2019, upto which date the bank guarantee was, in any case, to remain alive in terms of our judgment and order dated 05.04.2019 disposing of Writ Petition No.65 of 2018. The later portion of the order had restrained the Customs from enforcing adverse order, if any, against Fomento and correspondingly, bank guarantee was ordered to be extended upto 30.06.2019. This was to protect the Fomento, as otherwise, the bank guarantee might have been encashed by the Customs, no sooner the demand in the show cause were to be confirmed. The purpose of this direction was not to place Fomento....