TaxTMI 
TaxTMI 
2026 (9) TMI 428
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....he appellants and perused the record. 2. Despite service of notice, none appears for the revenue. Notice of mention made, served upon learned counsel for the revenue has been retained on record. 3. Present appeal has arisen under Section 130A of the Customs Act, 1962 (hereinafter referred to as 'the Act') from the order of the Customs, Excise and Service Tax Appellate Tribunal, Allahabad in Custom Appeal Nos. 70836 of 2025 and 70837 of 2025, both decided by a common order dated 27.01.2026. 4. The above appeals have been filed by the assessee, against orders passed with reference to Section 110A of the Act. Thereby provisional release of the goods 'Warp Knitted Fabrics of different yarn' has been confirmed against fu....
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....rovisionally attached] pending adjudication.- Any goods, documents or things seized [or bank account provisionally attached] under section 110, may, pending the order of the [adjudicating officer], 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 [adjudicating authority] may require.]" 7. Earlier vide Circular No. 35-2017 dated 16.08.2017 the Central Board of Excise and Customs had tried to restrict the discretion vested under Section 110A of the Act, by providing as under: "2.1 Seized imported goods shall be released provisionally by the competent authority upon request of the owner of the seized goods, subject to executing a Bond for the....
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....neral (Adjudication) v. M/s Its My Name Pvt. Ltd. 2020:DHC:2014-DB expressly held as under: "51. ......According to us, para 2 of Circular 35/2017-Cus is clearly contrary to Section 110A and is, consequently, void and unenforceable at law. It is not permissible for the CBEC, by executive fiat, to incorporate limitations, on provisional release of seized goods, which find no place in the parent statutory provision, i.e. Section 110A of the Act. Executive instructions may, it is trite, This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 11/12/2023 at 22:39:17 supplement the statute, whe....
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....er simplistic. For ready reference, we extract the same as below: "7. It is on record that the appellant M/s Miraya Vinyls Pvt Ltd had in terms of the direction of Tribunal deposited Rs.75,00,000/- vide e-challan on 29th December 2025 and that, insofar as M/s Canadian Speciality Vinyls is concerned, bond for CUSA No. 3 of 2026 full value of the goods had been furnished along with bank guarantee of Rs.60,33,703/- covering differential duty and interest thereon. It was reported that the goods seized from M/s Canadian Speciality Vinyls have since been released. 8.The interests of the exchequer have been protected by payment in cash, as deposit pending further investigations, of Rs. 75,00,000 which is more than differential duty and in....
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....ds were chargeable to import duty on MIP basis, the assessee claims-at most, the revenue authorities may only have required the assessee to provide for security of the differential amount of duty. 14. By demanding excessive security, the revenue authorities have obstructed the trade itself. Here, it has been emphasized that goods are not prohibited and there is no legal disability in their import. The only dispute is of classification. That may be decided only after a proper test report is made available. Till today, no such test report has arisen. 15. To the extent, the power to demand security for provisional release is a discretion to be exercised by the revenue authorities, no straight-jacket formula may be prescribed to determine....
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....r circumstances the assessee may have obtained release of the goods by provisionally complying with the terms put by the revenue authorities. Failure to do that may only invite respect action by the revenue as may lead to multiplicity of litigation. 18. If the approach of the Tribunal were to be approved, it may only end up giving a long handle to the revenue authorities, to first raise excessive demands and then coerce the assessee to pay up the same at the peril of losing its right of appeal against such exaggerated demands. That may lead to defeating the ends of justice. Therefore, the order dated 27.01.2026 of the Tribunal cannot be sustained. 19. Prima facie, the disclosure made in the import documents may not be doubted, except ....