Tax Management India. Com
Law and Practice  :  Digital eBook
Research is most exciting & rewarding
  TMI - Tax Management India. Com
Follow us:
  Facebook   Twitter   Linkedin   Telegram

Home Case Index All Cases Customs Customs + HC Customs - 2019 (8) TMI HC This

  • Login
  • Summary

Forgot password       New User/ Regiser

⇒ Register to get Live Demo



 

2019 (8) TMI 786 - HC - Customs


Issues:
Valuation dispute of imported consignment, compliance with conditions precedent for Settlement Commission application, appropriateness of Bank Guarantees, rejection of application based on non-compliance.

Valuation Dispute:
The case involved a consignment of gift items imported from China, specifically 'Christmas trees, water bottles, etc.' The Customs Department contested the valuation by the importer, leading to a difference of over ?10 lakhs. The nature of the goods was not disputed, only the valuation, triggering a 'Show Cause Notice' from the Customs Department.

Compliance with Conditions Precedent:
The importer sought Settlement Commission's intervention by applying under Section 127-B of the Customs Act, 1962. However, the application was dismissed due to non-compliance with the condition precedent of paying the differential duty. The importer had furnished Bank Guarantees for provisional clearance, which were to be appropriated for the Settlement Commission's consideration.

Appropriateness of Bank Guarantees:
The Court noted that the Bank Guarantees, totaling ?25.5 lakhs, were renewed and subsisting, indicating the importer's bona fides. The consignment was deemed innocuous, and there was no issue with importability. The Court directed the Settlement Commission to entertain the application after the Bank Guarantees were appropriated as per the Act's provisions.

Rejection Based on Non-Compliance:
The Court set aside the Settlement Commission's order solely due to non-compliance with the condition precedent. The First respondent was directed to appropriate the Bank Guarantees within a specified time frame. Following this, the Settlement Commission was instructed to consider the importer's application expeditiously and communicate the decision within a set timeframe.

This detailed analysis covers the key issues of the judgment, including the valuation dispute, compliance with conditions precedent, appropriateness of Bank Guarantees, and the rejection of the application based on non-compliance. The Court's decision focused on ensuring procedural compliance while addressing the specifics of the case to provide a fair resolution.

 

 

 

 

Quick Updates:Latest Updates