2012 (12) TMI 860 - HC - Customs

Provisional release of the vessel - Furnish security in the form of a bank guarantee - Section 129A (1)(a) of the Customs Act - Held that - With regard to the facts of the case and the urgency pleaded by the assessee. Direct the Tribunal to dispose of the appeal within three weeks from the date of its filing and removal of defects.

Summary

Issues:
Challenge to order directing provision of security in the form of a bank guarantee for the release of a vessel under the Customs Act, 1962.

Analysis:
The judgment delivered by H.G. Ramesh, J. pertains to a writ petition challenging an order dated 03.07.2012 that directed the petitioner to furnish security in the form of a bank guarantee with an auto-renewal clause amounting to Rs.14,00,00,000 for the provisional release of a vessel. The respondent's counsel argued that the order in question is appealable under Section 129A (1)(a) of the Customs Act, 1962. Upon examining the provisions of the Act, it was established that the impugned order is indeed appealable. Citing the Supreme Court's decision in United Bank of India v. Satyawati Tondon [AIR 2010 SC 3413], it was decided that since the petitioner has a statutory remedy of appeal available, the writ petition cannot be entertained. The petitioner was granted liberty to avail of the statutory remedy of appeal under Section 129(A) (1)(a) of the Act as per the law.

Furthermore, considering the urgency expressed by the petitioner's Senior Counsel, the judgment directs the Appellate Tribunal to expedite the appeal process and dispose of the appeal within three weeks from the date of filing, subject to the removal of any defects. It was emphasized that all contentions raised by both parties are to be kept open. Ultimately, the petition was disposed of, indicating the conclusion of the legal proceedings in this matter.