2020 (12) TMI 922 - HC - Customs

Provisional release of seized goods - enhancement of Bank Guarantee required to be furnished by the Petitioner - HELD THAT - The Petitioner is required to furnish a Bank Guarantee in the sum of ₹ 15 Crores, pursuant to which the Respondents are required to release the seized goods in terms of the order of CESTAT dated 13.11.2019 as modified by the Supreme Court - It is thus open to the Petitioner to furnish a Bank Guarantee in the sum of ₹ 15 Crores to the satisfaction of the Competent Authority. The Competent Authority shall thereafter forthwith release the seized goods to the Petitioner, provisionally, on furnishing the requisite Bond as directed by CESTAT. Contempt petition disposed off.

Summary

Issues:
Non-compliance of CESTAT order regarding the release of seized goods. Modification of CESTAT order by Division Bench regarding the Bank Guarantee amount. Further modification of Bank Guarantee amount by the Supreme Court. Procedure for furnishing the enhanced Bank Guarantee and releasing the seized goods.

Analysis:
The High Court dealt with a contempt petition alleging non-compliance of a CESTAT order directing the release of seized goods. The CESTAT order required the appellant to provide a bond for the full value of the goods along with a Bank Guarantee of ?1.25 crores. The Division Bench modified this order, allowing provisional release of certain goods upon furnishing a bond covering the entire value along with a Bank Guarantee of ?10 crores. However, the Division Bench quashed the release direction for certain goods lacking proper documentation. The Supreme Court further modified the Bank Guarantee amount to ?15 crores, emphasizing no misuse or illegal diversion of the released goods. The Petitioner was directed to furnish the enhanced Bank Guarantee at the office of the Principal Commissioner of Customs, following which the seized goods were to be released provisionally as per the CESTAT order.

The Petitioner had already provided a Bank Guarantee of ?3.16 crores, which was to be returned, and a new Bank Guarantee of ?15 crores was to be furnished as per the Supreme Court's direction. The Directorate of Revenue Intelligence confirmed the procedure for furnishing the enhanced Bank Guarantee and releasing the seized goods. The High Court, considering the Supreme Court's order, directed the Petitioner to provide the Bank Guarantee of ?15 crores to the Competent Authority for the release of the seized goods as per the CESTAT order. The contempt petition was disposed of based on these terms, allowing the Petitioner to comply with the Bank Guarantee requirement for the provisional release of the goods.