2021 (7) TMI 768 - AT - Customs

Maintainability of appeal u/s 129(A) of the Customs Act, 1962 - Provisional release of imported goods - Section 110 A of the Customs Act,1962 - HELD THAT - The appellants have been cooperating with the investigation and have deposited substantial sums during the investigation only before the passing of any formal adjudicating order confirming the duty. Under the circumstances, it is found that the appellant has established his bona fides. The appellants have requested to set aside the conditions of provisional release. The ends of Justice would be met if the amount of Bank Guarantee to be given is modified suitably, while keeping the condition of Bond as it is - Bank amount for submission of Guarantee is fixed at ₹ 5,00,000 in place of ₹ 30,00,000 and the amount of ₹ 65,79,899/ fixed for Bond remains unaltered - appeal allowed in part.

Summary

Issues:
Appeal against communication for provisional release of goods under Section 110 A of the Customs Act, 1962 - Maintainability under Section 129(A) of the Customs Act, 1962 - Modification of Bank Guarantee amount.

Analysis:
The appeal was filed against a communication for the provisional release of goods imported under Section 110 A of the Customs Act, 1962, which required the furnishing of a Bond and a Bank Guarantee. The appellant argued that the appeal was maintainable under Section 129(A) of the Customs Act, 1962, citing relevant case laws. The appellant had cooperated with the investigation, deposited significant amounts towards duty liability, and suffered financial losses due to the seized perishable goods. The department's representative defended the fixed Bank Guarantee amount based on duty liability and interest. The Tribunal found the appeal maintainable under Section 129(A) and acknowledged the appellant's cooperation and financial losses. While setting aside the conditions of provisional release would jeopardize revenue interests, the Tribunal recognized the appellant's hardship and financial losses. Therefore, the Tribunal partially allowed the appeal by modifying the Bank Guarantee amount to ?5,00,000 while keeping the Bond amount unchanged at ?65,79,899.

The Tribunal considered the maintainability of the appeal under Section 129(A) of the Customs Act, 1962, based on the appellant's cooperation with the investigation and the substantial deposits made towards duty liability. Despite recognizing the revenue interests at stake, the Tribunal balanced the appellant's hardship and financial losses by modifying the Bank Guarantee amount while retaining the Bond condition. This decision aimed to achieve justice by addressing both the revenue concerns and the appellant's financial difficulties arising from the prolonged seizure of perishable goods.