2017 (8) TMI 685 - HC - Customs

Provisional Release of goods - petitioner seeks appropriate direction, so that the goods can be exported - Held that - as finished leather, as per the extent policy, is freely exportable, while, generally, unfinished leather i.e. hides, skins, leather - tanned and untanned, are subject to export duty at the rate of 60%. It was made clear that the other conditions contained in Clauses 6, 7 and 8 of the order dated 23.11.2016 passed by the Commissioner remain unaltered - that part of the order dated 10.1.2017 requiring furnishing of security in the form of bank guarantee was directed to be stayed. Further, the communication requiring the petitioners therein to describe the subject goods as unfinished goods was also stayed and the respondents were also directed to release the goods forthwith upon fulfillment of the conditions stipulated in the order dated 22.12.2016. Subsequently, the matter was listed for reporting compliance and by order dated 30.1.2017, the writ petitions were closed. The writ petition is disposed of by directing the respondents to grant provisional release of the goods subject to the petitioner complying with the conditions imposed by this Court - petition allowed - decided in favor of petitioner.

Summary

Issues involved:
- Direction to release goods for export
- Challenge to conditions imposed by Commissioner of Customs
- Provisional release subject to payment of export duty
- Compliance with court orders regarding bank guarantee for penalty

Analysis:

1. Direction to release goods for export:
The petitioner filed a writ petition seeking a direction for the release of goods covered by a specific shipping bill for export. The petitioner relied on an order passed by the Commissioner of Customs, which was challenged by another exporter. The court directed the provisional release of the goods, relaxing certain conditions imposed by the Commissioner, to facilitate the export process.

2. Challenge to conditions imposed by Commissioner of Customs:
The petitioners were aggrieved by the conditions imposed by the Commissioner of Customs, particularly the requirement of payment of appropriate export duty for provisional release. The court intervened and allowed the petitioners to seek release by furnishing a bank guarantee equivalent to 30% of the export duty, considering the nature of the goods and export policies in place.

3. Provisional release subject to payment of export duty:
The court addressed the issue of payment of export duty as a condition for provisional release of goods. By substituting the payment requirement with a bank guarantee option, the court aimed to facilitate the export process while ensuring compliance with relevant regulations and policies governing the export of finished and unfinished leather products.

4. Compliance with court orders regarding bank guarantee for penalty:
Following the court's directions, the Department insisted on the furnishing of a bank guarantee for penalty amounts despite the earlier court order relaxing such requirements. The court reiterated its stance, emphasizing that seeking security in the form of a bank guarantee was unnecessary and went against the essence of its previous order. The court directed the release of goods without the need for such security, emphasizing compliance with its prior rulings.

In conclusion, the court disposed of the writ petition by directing the respondents to grant provisional release of the goods, subject to compliance with the conditions specified in previous court orders. The court emphasized consistency in applying its directives across similar cases and required the respondents to adhere to the specified conditions within a stipulated timeframe.