2020 (2) TMI 1302 - HC - Customs

Return of Bank Guarantee - finalization of provisional assessment - return sought on the ground that they did not initiate any retroactive check under Rule 7(c) of the Customs Tariff (Determination of Original of Goods under the Preferential Trade Agreement between Governments of Member States of the Association of South-East Asian Nations (ASEAN) and the Republic of India) Rules, 2009 notified on 31.12.2009 - HELD THAT - Sri B. Narasimha Sarma, counsel appearing for respondents, states that there was no retroactive check in terms of Rule 7(c) of the Rules referred to above, and the R.T.I. information furnished to the petitioner on 06.11.2019 confirms the same - In view of the same, since the time limit of two (02) months as laid down in Rule 7(1) has expired, it is the duty of respondents to complete provisional assessment and also return the Bank Guarantees given by petitioner towards the exports made by him under the Bills of Entry dt.05.04.2019 and 01.04.2019. The respondents are directed to release the Bank Guarantees furnished by petitioner within two (02) weeks from to-day since they anyway have a bond executed by petitioner; and the respondents shall also complete the provisional assessments in respect of the said Bills of Entry within a period of three (03) months from the date of receipt of copy of the order and communicate their decision to the petitioner - Petition allowed.

Summary

Issues:
Petitioner's obligation to return Bank Guarantees, failure of respondents to initiate retroactive check under Customs Tariff Rules, validity of a late verification request, hardship caused to petitioner, lack of response to representations made by petitioner.

Analysis:
The petitioner, a partnership firm engaged in international trade, imported Silver granules from Indonesia and produced Country of Origin Certificates for Duty exemption. The petitioner executed a provisional duty bond supported by a Bank Guarantee. The petitioner claims that the respondents failed to initiate a retroactive check under Customs Tariff Rules and did not return the Bank Guarantees, causing hardship. The petitioner sought information under the Right to Information Act, confirming no verification request was made by the respondents.

The respondents argued that no retroactive check was conducted, as confirmed by the RTI information provided to the petitioner. The time limit for initiating a verification request had expired, and hence, the respondents were obligated to complete the provisional assessment and return the Bank Guarantees. The court directed the respondents to release the Bank Guarantees within two weeks and complete the provisional assessments within three months, communicating their decision to the petitioner.

In conclusion, the High Court allowed the Writ Petition, instructing the respondents to release the Bank Guarantees and complete the provisional assessments within specified timelines. No costs were awarded, and any pending miscellaneous petitions in the matter were closed as a result of the judgment.