TaxTMI 
TaxTMI 
2026 (7) TMI 931
X X X X Extracts X X X X
X X X X Extracts X X X X
.... at ICD CONCOR, Ludhiana. On the basis of an information received, the officers of Directorate of Revenue Intelligence (DRI) initiated investigation into the imports under the suspicion that the appellants imported 'beet sugar' thereby misusing the licenses; the officers seized the goods on 30.03.2026 to 02.04.2006; the following are the details of the bills of entry: Table-A Sr. No. BoE No. and Date Description of the goods declared Port Code Quantity In kgs Declared Assessable Value (in Rs.) Differential Duty 1. 8259145 24.03.2026 White Sugar INQR6 7,27,000 3,27,52,440.50 3,60,27,684.55 2. 7939270 07.03.2026 White Sugar INLDH6 1,86,050.00 82,60,620.00 90,86,682.00 3. ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... than 30% of the differential duty. He submits that learned Commissioner has relied on Circular No.35/2017 dated 16.08.2017; however, the said circular has been struck down, by the Hon'ble Delhi High Court, in the case of Its My Name Pvt. Ltd. - 2021 (375) ELT 545 (Del.); the same was relied by the Hon'ble Court in the case of S.K. Overseas - (2024) 15 CENTAX 150 (Del.) (388). He submits that the Bank Guarantee fixed without jurisdiction as differential duty, redemption fine and penalty are mere contingent liabilities which arise only after adjudication of the case; the Bank Guarantee fixed is disproportionate looking into the fact that the differential duty, if at all payable, comes to only Rs.19,21,114.80/-. He relies on the case of Navsh....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... 2.2. He relies on T.L Verma & Co. Pvt. Ltd. - 2010 (251) ELT A116 (SC)/ 2009 (234) ELT 203 (P & H) 4. Heard both sides and perused the records of the case. Brief issue involved in the case is to see whether the conditions for provisional release of the imported 'beet sugar', alleged to have been mis-declared as 'cane sugar' are reasonable fair and justified in the facts and circumstances of the case. Learned counsel for the appellants submits that as of now, no conclusive test report has been obtained by the investigating agency and to that extent, the alleged mis-declaration remains a mere suspicion. We find that a serious allegation such as misdeclaration cannot be made without a preliminary report or evidence to suggest that there wa....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... * the goods are not per se prohibited; the importer is not a flyby night operator; they are in the business for more than 30 years and were importing regularly at the Port in question and in other Ports; * the Appellant had imported similar goods on an earlier occasion vide Bill of Entry No. 9387015 dated 23.11.2023 and CRCL New Delhi refused to conduct testing claiming lack of facility for conducting tests especially "FITR Analysis"; the said consignments have been cleared after getting the same tested from Textile Committee; In the instant case, the opinion of Textile Committee has not been taken; * CRCL has not addressed all the queries raised by the importer and have not tested all the parameters as per Indian or In....
X X X X Extracts X X X X
X X X X Extracts X X X X
....in decision in case of Commissioner of Customs, ICD vs. Navshakti Industries Pvt. Ltd., 2011 (5) TMI 149- Supreme Court wherein Hon'ble Supreme Court modified the Hon'ble High Court's Order and directed the respondents to furnish bank guarantee of 30% of the differential duty to the satisfaction of the Commissioner of Customs for the release of goods in question. Relevant extract has been reproduced hereunder for ease of reference: "Having considered the facts and circumstances of the case and also taking notice of the fact that the goods in question are newsprint which is perishable in nature, we issue a direction that the goods of the respondents shall be cleared by the appellants herein on the respondents' furnishing a bank ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....equired 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)." (Emphasis Supplied) 7. In view of the above and in view of the fact that the investigating agency has not come to a definitive conclusion, by way of any test report, that the goods are mis-declared and are liable for confiscation, we find that putting stringent conditions for provisional release is not fair and justified. One should also take i....