2015 (10) TMI 2124 - HC - Customs

Release of Bank guarantee deposited under protest Petitioner imported shoulder type power weeder AHM200 - Quash two seizure mahazars and provisional release order Sets of imported items were seized under mahazars Respondent ordered provisional release subject to execution of bond for full value and furnishing of bank guarantee for ₹ 1.5 Crores. Held That - Release of goods on fulfilment of conditions of the execution of bond, furnishing bank guarantee for Rupees One Crore, in three instalments and furnish bank guarantee for ₹ 50,00,000/- ; 50% of seized goods to be released - Bank guarantee for further sum of ₹ 25,00,000/-; 25% of goods to released and further bank guarantee for value of ₹ 25,00,000/-; remaining goods shall be released Conditions are subject to final outcome of the proceedings and petitioner at liberty to avail remedy Decided in favour of Revenue.

Issues:
1. Quashing of provisional release order and bank guarantee condition.
2. Quashing of seizure mahazars and release of seized goods.
3. Challenge to another provisional release order.

Analysis:

Issue 1: Quashing of provisional release order and bank guarantee condition
The petitioner imported goods under a specific customs tariff heading and faced seizure of items worth Rs. 40.58 Lakhs. The petitioner sought provisional release pending adjudication, offering to pay the differential duty under protest. The Additional Commissioner of Customs ordered the release of goods upon execution of a bond and payment of differential duty, along with submission of a bank guarantee for 50% of the goods' value. The petitioner complied and the goods were released. The High Court, considering the circumstances, directed the release of the seized goods subject to conditions. The petitioner was required to execute a bond for the goods' value and furnish a bank guarantee in three instalments, with 50% of the goods being released upon initial compliance.

Issue 2: Quashing of seizure mahazars and release of seized goods
Two seizure mahazars were issued for the petitioner's godowns, resulting in the seizure of brush cutters. The petitioner challenged this action through a writ petition, seeking the release of the seized goods. The High Court, after hearing both sides, directed the release of the seized goods subject to the petitioner fulfilling specified conditions, including the execution of a bond and furnishing a bank guarantee in instalments. The release of the goods was to occur in stages upon the petitioner's compliance with the set requirements.

Issue 3: Challenge to another provisional release order
Following a show cause notice and a request for provisional release, the petitioner faced another provisional release order requiring a bond for the full value of goods and a bank guarantee of Rs. 1.5 Crores. The petitioner challenged this order through a writ petition. The High Court, after due consideration, directed the release of the seized goods subject to the petitioner fulfilling conditions, including executing a bond and furnishing a bank guarantee in instalments. The release of goods was to be staggered based on the petitioner's compliance with the prescribed terms.

In conclusion, the High Court disposed of the writ petitions, directing the release of the seized goods subject to specific conditions and installment-based bank guarantee requirements. The petitioner was granted the opportunity to raise objections before the adjudicating authority, with the final outcome of the proceedings affecting the rights obtained through compliance with the court's directions. The petitioner's objections and grievances were to be addressed through the appropriate legal remedies, with the order not setting a precedent for future cases and no costs being awarded in this instance.

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