TaxTMI 
TaxTMI 
2025 (7) TMI 89
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....goods are perishable in nature and are highly susceptible to fungal infestation due to atmospheric humidity. That the market value is deprecating with each passing day and the prolonged seizure is severely impacting their export-worthiness due to deterioration over time and the Appellant is having financial hardship due to demurrage charges. 2. While taking up the application for Early Hearing the learned Departmental Representative has raised preliminary objection for hearing the appeal by the Single Member Bench. In support of his submission the learned Departmental Representative has relied upon the decision of the Hon'ble Allahabad High Court in the case of Commissioner of C.Ex. & S.T., Lucknow V/s Aimr Jewels Pvt. Ltd. reported in 2017 (6) G.S.T.L. 155 (All.) whereby the Hon'ble High Court while dealing with the issue in a case where the goods had already been ordered to be confiscated. The Hon'ble High Court examined Section 129C(4) of the Customs Act and held that a bare reading of the said provision that any case, which is assigned to a Bench can be decided by one of the members sitting singely if the value of the goods confiscated without option to redeem under ....
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....d that neither the Panchanams under which the subject goods were detained nor the seizure memo under which the goods have been seized mention Section 111 of the Customs Act. This is sufficient to arrive at a conclusion that the present case before hand is not a case under Section 111 instead, is a case pertaining to Section 110A of the Customs Act. As rightly argued by the learned Counsel for the Appellant that the Hon'ble Allahabad High Court dealt with the case where the order for confiscation has been passed without giving any option to redeem the goods. I find that the present case is not such a case. Therefore, I hold that the above cited judgement of the Hon'ble Allahabad High Court is clearly distinguishable on the facts of the present case and does not support the arguments of the learned Departmental Representative and is not applicable to the case. 7. I may respectfully refer to the judgement of the Hon'ble Delhi High Court in Shantilal Mehta Vs Union of India & Ors, 1983 (14) ELT 1715 (Del.), wherein the Hon'ble Delhi High Court in para 38 of the judgement explained the meaning of 'confiscation' as under:- "38. The word 'confiscate'....
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....Bank Guarantees for seeking provisional release of seized goods as contended by the learned counsel for the Appellant. 11. Briefly stated, the facts of the case are that the Appellant has Private Bonded Warehouse at Shed No. 1 and 2 situated at Aligarh. The Appellant is a Star 1 Export House. The Appellant had imported Betel Nuts under Warehouse Bill of Entry (without payment of customs duty) declaring that it will export Flavoured Supari manufactured after processing the imported goods under Manufacturing and Other Operation Warehouse Regulation Scheme (MOOWR). The DRI, Delhi Zonal Unit, New Delhi conducted searches at various places and the search proceedings were recorded under respective Panchnamas dated 01.06.2024 & 02.06.2024 and, consequently, certain bags of imported betel nut and the goods meant to be exported (Betel Nut Powder) were examined. Consequently, the DRI, DZU vide letter dated 01.06.2024 had informed the Deputy Commissioner, ICD to hold the imported and to be exported consignments of the subject goods. This letter was withdrawn by the DRI vide letter dated 26.09.2024. For detaining the goods, it is the case of the Department that the goods were imported in co....
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....dated 28.05.2025 has been issued, which is pending adjudication and, therefore, the issue of provisional release of the subject goods comes within the ambit of section 110A of the Customs Act, 1962. 14. Heard both the sides and perused the appeal records. 15. The learned Counsel for the Appellant submits:- (i) that, detention and seizure on one hand is separate and distinct from confiscation. Since, the present case is pending adjudication, the stage of confiscation has not yet arrived. Therefore, the case is governed by the category seizure for which applicable provision is Section 110A and, under which, the subject seized goods are liable to be provisionally released; (ii) that, the subject seized goods to be imported have been seized on presumption that the same would be diverted; (iii) that while passing the impugned order, learned Commissioner has placed reliance on the Circular No. 01/2011-Cus dated 04.01.2011, which is general in nature and cannot be made applicable in view of fact that for the subject goods there is a specific circular No. 32/2009-Cus dated 25.11.2009. It is a settled law that special provision would prevail over general pro....
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....nding adjudication. Therefore, it is my considered view that the subject seized goods are liable for provisional release to the Appellant. 18. As regards the arbitrary condition for furnishing Bank Guarantees, as ordered in the impugned order, I observe that this condition has been struck down by the Hon'ble Delhi High Court in the case of Its My Name Pvt. Ltd (supra) and Shanu Impex case (supra). I also find that the Appellant, admittedly and undisputed, is 1 Star Export House and for the goods meant to be exported by such Star Export House, irrespective of the category (i), (ii), (iii), (iv) or (v) for Star Houses, the condition for furnishing Bank Guarantees has been relaxed by the specific Circular No. 32/2009-Cus dated 25.11.2009. Further the Hon'ble Delhi High Court in the cases cited supra have been pleased to struck down the condition of furnishing Bank Guarantees as required by Circular No. 35/2017-Cus dated 16.08.2017. 19. On perusal of the records, I also find that the DRI itself has in its letter dated 25.09.2024 given its no objection for provisionally releasing the subject seized goods of both the categories. The DRI in its said letter has stated that, "the ....