2011 (6) TMI 24 - HC - Customs

Confiscation - Exemption from additional duty of customs (CVD) - Notification No.30/2004-CE dated 09.07.2004 - The respondents are directed to release the goods concerned, in respect of the Bills of Entry, subject to the condition that the petitioner furnishes a bank guarantee for the entire value of Additional Duty of Customs (CVD) - The writ petition is ordered accordingly

Summary

Issues:
- Assessment of Bill of Entry for exemption from additional duty of customs (CVD) under Notification No.30/2004-CE
- Release of goods subject to furnishing a bank guarantee for the entire value of CVD
- Compliance with Customs Act, 1962

Analysis:
1. Assessment of Bill of Entry for Exemption:
The petitioner sought a direction for assessing Bill of Entry Nos. 3554331 and 3623143 for exemption from additional duty of customs (CVD) under Notification No.30/2004-CE. Referring to previous orders, the Court held that the prayer for granting the exemption cannot be allowed.

2. Release of Goods with Bank Guarantee:
Instead of granting the exemption, the Court directed the respondents to release the goods subject to the petitioner furnishing a bank guarantee for the entire value of CVD. The bank guarantee was required to be provided to the satisfaction of the second respondent and kept active until the adjudication process is completed. Upon furnishing the bank guarantee, the respondents were mandated to release the goods promptly.

3. Compliance with Customs Act, 1962:
The judgment emphasized compliance with the provisions of the Customs Act, 1962. The Court's order for releasing the goods was contingent upon the petitioner fulfilling the condition of providing a bank guarantee for the CVD amount. The directive ensured that the goods would be released expeditiously upon compliance with the specified requirement.

In conclusion, the High Court of Madras, through the judgment delivered by Mr. Justice M. Jaichandren, addressed the issues of assessing Bill of Entry for exemption from CVD, releasing goods with a bank guarantee, and ensuring compliance with the Customs Act, 1962. The decision highlighted the necessity of furnishing a bank guarantee for the CVD amount as a condition for the release of goods, in lieu of granting the requested exemption. The judgment provided a clear directive for the parties involved, maintaining adherence to legal provisions and procedural requirements.