2024 (1) TMI 197

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....tions of the provisional release of seized garlic imported, availing the benefit of Notification No.99/2011-CUS dated 09.11.2011, applicable to the imports under South Asia Free Trade Area Agreement (SAFTA). On the basis of an investigation conducted by the Directorate of Revenue Intelligence, the goods imported appeared to be of non-Afghanistan origin contrary to the claim of the appellants and therefore, the same were seized. On a request made by the appellant-importers, provisional release was ordered by the Department, subject to the conditions specified therein; appellants challenged the orders vide CWPs before the Hon'ble High Court of Delhi, who set aside the impugned order and remanded the case back to the Commissioner. 2. The Co....

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....etch even 50% of the imported value, on being sold; therefore, the amount of Bond and Bank Guarantee fixed/imposed is very harsh; he further submits that in respect of M/s S.K Overseas, they may be permitted to pledge a property in lieu of Bank Guarantee. He relies upon the following cases: • Deenanath Maurya- 2021 (378) ELT 626 (Tri. All.) • Swiss Carbonate -2022 (381) ELT 248m (Guj.) • Spirotech Heat Exchangers Pvt. Ltd. - 2016 (341) ELT 110 (Del.) • Navshakti Industries Pvt. Ltd. - 2011 (267) ELT 483 (Del.) • G.B. International- 2017 (347) ELT 406 • Printwell Offset - 2016 (336) ELT 606 (Guj.) 4. Shri Narinder Singh, assisted by Shri Shivam Syal, learned Aut....

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....der the Notification regarding the rules of origin is likely to take some time. Therefore, there is nothing wrong in releasing the goods provisionally as has been ordered by the competent authority. However, the only difference of opinion lies in the quantum of Bond and Bank Guarantee to be furnished for such release. 6. We find that the Hon'ble High Court of Gujarat in the case of Swiss Carbonate (supra) quoting from other judgments held that: "There are many judgments of different High Courts which have been placed by Mr. Nayak for our consideration. One of the judgment of Delhi High Court in the case of Spirotech Heat Exchangers Pvt. Ltd. v. Union of India reported in 2016 (341) E.L.T. 110 (Del.) takes the view that the provi....

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....n'ble High Court of Gujarat in the case of Printwell Offset (supra) held that: 5. In the light of the fact that the principal relief prayed for in this petition has not been pressed, it is not necessary to enter into the merits of the impugned order dated 2-12-2015 withdrawing the redemption issued to the petitioner. However, consequent to the said order, as on date, the petitioner's redemption stands withdrawn. Resultantly, the petitioner firm would be required to fulfil the export obligation in terms of the EPCG scheme authorization granted to it. Since the first part of the export obligation was to be completed within a period of four years, it appears that the petitioner still has time to fulfil the export obligation. As rightl....

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....e goods is required to be sustained (ii) The second condition which requires the petitioner to furnish bank guarantee for full duty amount is required to be modified by directing the petitioner to furnish a bank guarantee to the extent of 30% of the duty amount in line with the decision of the Supreme Court in Commissioner of Customs, ICD, TKD, New Delhi v. Navshakti Industries Pvt. Ltd. (supra). 9. We find that various High Courts have been consistent in taking the view that Bank Guarantee of about 25% of the differential duty along with Bond for full duty would suffice for provisional release of seized goods. In the instant case, learned Authorized Representative seeks to rely on the judgment of Hon'ble Punjab & Haryana High C....