2011 (4) TMI 45 - HC - Customs

Release the goods - Directed certain conditions - Pay the entire amount of duty as per the declared value,which may be based on the contract or price etc. - Provide sufficient bank guarantee drawn on any Nationalised bank in respect of 50% of the difference in duty,in favour of the Department - Remaining 50% of the difference in duty, the petitioner shall furnish a personal bond - On completion of all these conditions, the respondents shall release the goods -The respondents shall complete the adjudication process, within a period of four weeks thereafter, by issuing a necessary show cause notice - It is made clear that on the issuing of the necessary show cause notice, the petitioner shall submit its objections, appear before the respondents, through its authorised representatives and cooperate with the Department in the adjudication process.

Summary

Issues involved:
Release of goods subject to certain conditions based on a previous court order.

Analysis:
The judgment delivered by the High Court of Madras involved the release of goods subject to specific conditions as per a previous court order. The petitioner's counsel highlighted that the issues in the current writ petition were similar to those covered in a previous order dated 29.12.2010 in W.P.Nos.30153 and 30154 of 2010, where the court directed the respondent to release the goods under certain conditions. The Central Government Standing Counsel representing the respondents had no objections to the court following its earlier order. Consequently, the court disposed of the writ petition and directed the respondents to release the goods with the following conditions.

Firstly, the petitioner was instructed to pay the entire amount of duty to the Department immediately, based on the declared value as per the provisions of the Customs Act. Additionally, the petitioner was required to provide a sufficient bank guarantee to the satisfaction of the respondents, drawn on any Nationalised bank, in favor of the Department, for 50% of the difference in duty. This bank guarantee was to be maintained until the adjudication process was completed. For the remaining 50% of the difference in duty, the petitioner had to furnish a personal bond to the satisfaction of the respondents. Upon fulfilling all three conditions, the respondents were mandated to release the goods.

Furthermore, upon the release of the goods and the petitioner complying with the specified conditions, the respondents were obligated to complete the adjudication process within four weeks by issuing a necessary show cause notice. It was explicitly stated that upon receiving the show cause notice, the petitioner must submit objections, attend before the respondents through authorized representatives, and cooperate with the Department during the adjudication process. The judgment emphasized the procedural requirements and conditions to be met for the release of goods and the subsequent completion of the adjudication process within the stipulated timeframe.