2014 (2) TMI 1194 - HC - Customs

Provisional Release of Goods - Petitioners were alleged to have been indulged in secret removal of goods without payment of duty Addl. Commissioner passed order and permitted provisional release of goods seized on condition of executing full value bond along with 25% cash security According to petitioners, recording of quantity of goods, raw material as well as finished products was not accurate Held that - it would be appropriate to permit petitioners to clear finished goods as per provisional release order, subject to fulfilment of condition mentioned in current judgment On application that may be made by petitioners, provisional release of raw material also permitted by competent authority Petition disposed of.

Summary

Issues:
Proceedings for recovery and confiscation of goods and penalty; Provisional release of seized goods; Discrepancy in recording quantity of goods in panchnama; Grievance regarding clearance of raw material and finished goods.

Analysis:
The petitioners were facing proceedings for recovery and confiscation of goods and penalty due to alleged clandestine removal of goods without payment of duty. The Additional Commissioner of Excise had permitted provisional release of seized goods, including S.S. Pipes, under specific conditions. The petitioners raised a grievance that no order was passed for the provisional clearance of raw material, and they disputed the accuracy of the quantity of goods recorded in the panchnama dated September 27/28, 2012. They requested that the goods be weighed at the time of clearance to ensure accuracy.

Regarding the first grievance, both parties agreed that the petitioners would apply for provisional release of raw material within a week. The competent authority was directed to pass an appropriate order on the application within three weeks. As for the second grievance, the petitioners were permitted to clear the finished goods as per the provisional release order dated July 17, 2013. The clearance process involved notifying the Department, weighing the goods at clearance, and depositing 25% of the value specified in the release order. The bond to be furnished would cover the entire specified amount, and the weight of the goods would be recorded in the panchnama.

It was clarified that the clearance arrangement was solely to ascertain the exact quantity of goods being cleared and would not impact any pending disputes or adjudication. If the provisional release of raw material was permitted, its clearance would also follow the same process. With these directions, the petition was disposed of, and notice was discharged with no costs imposed.