2020 (1) TMI 391 - HC - Customs

Release the goods for re-export - petitioners submitted that the petition be permitted to be withdrawn with a liberty to the petitioners to file appeal under the provisions of Section 129-A of the Customs Act to the Tribunal i.e. CESTAT - HELD THAT - Permission, as sought for, is granted with aforesaid liberty. It goes without saying that it would be absolutely open to the petitioners to urge the Tribunal in the appeal or, if permissible with appropriate application, for seeking appropriate interim orders in accordance with law for release of goods and present proceedings shall not be treated in any manner an impediment in the way of the parties in justifying their contentions before the Tribunal. Petition disposed off as withdrawn.

Summary

Issues:
1. Delay in releasing goods after accepting bank guarantee.
2. Challenge of final Order in Original by petitioner.
3. Withdrawal of petition with liberty to file appeal under Customs Act.

Issue 1: Delay in releasing goods after accepting bank guarantee
The petition was filed seeking direction for releasing goods after accepting a bank guarantee as ordered by CESTAT. The Deputy Commissioner confirmed receiving the bank guarantee but final Order in Original was passed causing hardship to the petitioner due to the nature of goods (fast evaporating petroleum products). The petitioner faced demurrage charges, detention charges, and risk of material evaporating. The Court was urged to issue appropriate directions for priority disposal of any interim application filed with the appeal to provide necessary relief.

Issue 2: Challenge of final Order in Original by petitioner
The respondents did not object to the request for priority disposal of the interim application but reserved the right to raise contentions in the application. The petitioner sought permission to withdraw the petition with liberty to file an appeal under Section 129-A of the Customs Act to CESTAT for interim relief. The Court granted permission for withdrawal with liberty, emphasizing the petitioner's right to urge the Tribunal for appropriate interim orders for goods release without hindering the parties' contentions before the Tribunal.

Issue 3: Withdrawal of petition with liberty to file appeal under Customs Act
The petition was permitted to be withdrawn with liberty for the petitioner to file an appeal under the Customs Act to CESTAT for interim relief. The Court highlighted that the withdrawal should not impede the parties from presenting their contentions before the Tribunal. It was expected that the Tribunal would promptly dispose of any application filed, ensuring due process and opportunities for all concerned parties.

This judgment addressed the delay in releasing goods, the challenge of the final Order in Original, and the withdrawal of the petition with liberty to file an appeal under the Customs Act. The Court emphasized the need for priority disposal of any interim application to provide relief to the petitioner and ensure a fair process before the Tribunal.