2018 (7) TMI 108 - AT - Customs

Provisional release of imported goods on furnishing of bank guarantee and bond - Held that - In spite of application made for provisional release dated 18.01.2018, the provisional release has been allowed belatedly by the impugned order dated 27.04.2018 and that also, on the intervention of the Hon ble High Court - till date the show cause notice has not been issued to the appellant, in the matter. The terms of provisional release are modified - Upon complying of the modified conditions, the Customs Authorities shall release the goods forthwith within a period of 3 days of such intimation of compliance, made to it - appeal allowed.

Summary

Issues involved:
Provisional release terms, under-invoicing, seizure of goods, delay in release, intervention of High Court, modification of terms, bank guarantee amount, bond requirement, dispute of goods' value.

Analysis:
The appeal concerns the appellant's grievance with the provisional release terms for imported goods against a specific order. The provisional release conditions included furnishing a bank guarantee, bond equivalent to goods' value, and an undertaking not to dispute goods' value and identity. The appellant, a proprietorship firm, imported various items from China, facing issues with the declared value and quantity of goods, leading to seizure under suspicion of under-invoicing. The appellant faced delays in the release process, impacting their business and causing financial difficulties. The appellant moved the Delhi High Court seeking provisional release, which was granted, allowing the appellant to challenge the terms. The High Court directed the Revenue to respond, eventually disposing of the writ petition, highlighting the excessive conditions imposed on the appellant for release. The appellant sought modification of the terms, citing their harshness and impracticality due to the high value demanded. The Revenue opposed the modification request, leading to a detailed consideration by the Tribunal. Despite the delay in provisional release and absence of a show cause notice, the Tribunal modified the terms by reducing the bank guarantee amount significantly while maintaining the bond requirement. The requirement not to dispute goods' value was waived, and the Customs Authorities were directed to release the goods promptly upon compliance with the modified conditions. Ultimately, the appeal was allowed, providing relief to the appellant and issuing the order accordingly.

This comprehensive analysis addresses the issues surrounding the provisional release terms, under-invoicing concerns, seizure of goods, delays in release, High Court intervention, modification of terms by the Tribunal, and the final decision favoring the appellant with adjusted conditions for release.