2015 (9) TMI 763 - HC - Customs

Import of silk fabrics - Benefit of additional duty exemption in terms of Notification No.30/2004 CE dt 9.7.2004 - Held that - petition is disposed of by directing the respondents to release the subject goods concerned in respect of the above said Bill of Entry subject to the condition that the petitioner furnishes bank guarantee to the entire value of Additional Duty of Customs (CVD) to the satisfaction of the second respondent, which should be kept alive till adjudication process is completed. It is made clear that as and when the bank guarantee is furnished, the respondents shall forthwith release the goods - Decided conditionally in favour of assessee.

Summary

Issues:
1. Issuance of writ of mandamus for filing manual bill of entry and extending additional duty exemption.
2. Application of judgment in a previous case for releasing goods with a bank guarantee.

Analysis:
1. The writ petition was filed to obtain a writ of mandamus directing the respondents to allow the filing of a manual bill of entry and extend the benefit of additional duty exemption for silk fabrics imported by the petitioner. The petitioner relied on a judgment of the Supreme Court in the case of M/s. ITC Ltd. against Commissioner of Customs to support their claim. The High Court referred to a previous order in W.P.No.33952 of 2014 where goods were released upon furnishing a bank guarantee for the entire value of Additional Duty of Customs (CVD). Following the precedent, the High Court directed the respondents to release the goods upon the petitioner furnishing a bank guarantee, with the option for the respondent to accept a manual bill of entry.

2. The High Court disposed of the writ petition by directing the release of the subject goods upon the petitioner furnishing a bank guarantee for the entire value of Additional Duty of Customs (CVD). The court reiterated the condition that the bank guarantee should be maintained until the adjudication process is completed. The judgment in W.P.No.33952 of 2014 served as a precedent for this decision, emphasizing the importance of providing a bank guarantee for the release of goods. The court clarified that the respondents must release the goods promptly once the bank guarantee is furnished, while also leaving the option open for the respondent to accept a manual bill of entry. The writ petition was closed without any costs, following the established legal principles and previous judgments.