2012 (9) TMI 81 - HC - Customs

Writ petition - demanding release of the bank guarantees and also refund of the amount pre-deposited in terms of the order of the Tribunal - alleged that the respondent authorities are withholding release of the bank guarantees as well as refund of pre-deposit Held that - Decision of the Tribunal having assumed finality, is not open to the respondent authorities to either withhold release of the bank guarantees or to withhold refund - respondent authorities directed to forthwith release the bank guarantees and further to refund the deposit

Summary

Issues:
Disputed valuation of imported silk fabrics, imposition of fine and penalty, appeal before Customs, Excise & Service Tax Appellate Tribunal, release of bank guarantees and refund of pre-deposit.

Analysis:
The petitioners imported silk fabrics under 5 bills of entry, with the respondent authorities disputing the declared valuation, resulting in higher duty assessment. An interim order allowed the goods' release upon furnishing bank guarantees. A show-cause notice was issued on February 17, 2005, to which the petitioner replied. Subsequently, an adjudication order was passed on February 25, 2005, enhancing the goods' value and imposing a fine and penalty on the petitioners.

The petitioners, aggrieved by the adjudication order, appealed to the Customs, Excise & Service Tax Appellate Tribunal. During the appeal hearing, the petitioners were required to pre-deposit a sum, which they complied with. The Tribunal, on July 28, 2010, accepted the value declared by the petitioners, and the respondents did not appeal this decision, making it final.

Despite the finality of the Tribunal's decision, the petitioners faced challenges in obtaining the release of bank guarantees and refund of the pre-deposit amount. The court held that the respondent authorities had no authority to withhold these amounts post the Tribunal's final decision. Consequently, the court directed the authorities to release the bank guarantees and refund the pre-deposit amount along with interest as per the Customs Act, 1962, within 60 days from the order's communication.

The court clarified that the allegations in the writ petition were not deemed admitted due to the absence of affidavits. Additionally, urgent certified copies of the order were to be provided to the parties upon completion of formalities.