2023 (5) TMI 145

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....996 dated 22.08.2022 for clearance of old used machinery (capital goods) and declared assessable value of Rs. 4,28,86,373/-. As per the Board circular 7/2020-Cus dated 05.02.2020 such goods were required to be cleared only after examination and determination of the value by the Chartered Engineer empanelled with the custom authority. Accordingly, the goods were examined by the Chartered Engineer Shri. S. M. Khanche of M/s. Ace-Global Tech. Based on his reports the assessable value of imported goods was determined and duty paid by the appellant on 31.08.2022. 2.2 After out of charge 01.09.2022, appellants were informed that the imported goods have been put on hold by the DRI for investigations. The goods were subsequently seized vide the ....

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....ant and Shri.Ram Kumar, Assistant Commissioner (AR) for the revenue. 4.1 We have considered the impugned order along with the submissions made in appeal and during the course of arguments. 4.2 Undisputedly in the present case the goods sought to be cleared are used machinery items/ capital goods. Board has vide Circular dated 05.02.2020 clarified that such goods have to be assessed in following manner: "6. To sum up, the following guidelines shall be followed: (a) All imports of second hand machinery/used capital goods shall be ordinarily accompanied by an inspection/appraisement report issued by an overseas Chartered Engineer or equivalent, prepared upon examination of the goods at the place of sale. (b) Th....

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....er officer may proceed to determine the value of the goods, sequentially, in terms of rule 4 to 9." The goods have been assessed by the group following the procedure laid down as per the above circular and the duty paid accordingly. 4.3 Section 110A of Customs Act, 1962 provides as follows: "Section 110A. Provisional release of goods, documents and things seized or bank account provisionally attached] pending adjudication. - Any goods, documents or things seized or bank account provisionally attached under section 110, may, pending the order of the adjudicating authority, be released to the owner or the bank account holder on taking a bond from him in the proper form with such security and conditions as the adjudicat....

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....hile provisional release of seized imported goods under Section 110A of the Customs Act, 1962 may normally be considered by the competent adjudicating authority upon a request made by the owner of the seized goods, provisional release shall not be allowed in the following cases i) Goods that do not fulfill the statutory compliance requirements/ obligations in terms of any Act, Rule, Regulation or any other law for the time being in force; ii) Goods that do not fulfill the statutory compliance requirements/obligations in terms of any Act, Rule, Regulation or any other law for the time being in force; iii) Goods specified in or notified under Section 123 of the Customs Act, 1692; iv) Where the competent aut....

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....hile allowing provisional release of goods." 4.5 As no reasons are forthcoming for enhancing the value of the imported goods over and above the value belonging by the Chartered Engineer. We are of the view that the order prescribing conditions of provisional release is too harsh, taking note of the fact that on the assessed value appellant has already paid duty amounting to Rs. 1,18,94,536/- . Taking into account, the fact that issue is in respect of the redetermination of assessed value, the bond should not be more than the deferential value. Commissioner (Appeal) has in fact modified the order in respect of the security deposit to be made without amending the value of the bond. In our view taking into account of the fact of the case th....