2012 (11) TMI 126 - HC - Customs

Provisional release of goods - Held that - The value of the silk yarn imported by the petitioner, from Vietnam, had been fixed, as USD29.5 per kilogram it is open to the petitioner to take delivery of the goods in question, by paying the customs duty, on the value fixed by the respondents, at USD29.5 per kilogram. The respondents are directed to release the goods in question on the petitioner paying the customs duty equivalent to 75% of the value of the goods at USD29.5 per kilogram & for the balance 25% the petitioner shall furnish a personal bond to the satisfaction of the respondents. The respondents shall complete the adjudication process, within a period of four weeks thereafter by issuing a necessary show cause notice & in reply to it the petitioner shall submit its objections, appear before the respondent and co-operate with the department in the adjudication process.

Summary

Issues: Provisional release of goods, payment of customs duty, bank guarantee, personal bond, completion of adjudication process

In this judgment by the Madras High Court, the petitioner sought provisional release of goods subject to certain conditions. The petitioner was directed to pay the entire amount of duty based on the declared value, provide a bank guarantee for 50% of the duty difference, and furnish a personal bond for the remaining 50%. The respondents were to release the goods upon the petitioner fulfilling these conditions. Additionally, the adjudication process was to be completed within four weeks after the release of goods. The Court considered the submissions of both parties and ordered the release of goods upon the petitioner paying 75% of the customs duty based on the fixed value, with the remaining 25% to be covered by a personal bond. The respondents were directed to complete the adjudication process within four weeks of the release, including issuing a show cause notice to which the petitioner was to respond and cooperate.

The judgment highlighted the importance of complying with the conditions set forth for the provisional release of goods, emphasizing the payment of customs duty, bank guarantee, and personal bond. It reiterated the need for timely completion of the adjudication process once the goods were released. The Court's decision aimed to balance the interests of both parties involved in the matter, ensuring a fair and efficient resolution. The judgment provided a clear framework for the provisional release of goods and the subsequent steps to be taken by the petitioner and the respondents to facilitate the adjudication process effectively.