2018 (2) TMI 1139 - AT - Customs

Provisional release of imported goods - areca nuts - Held that - nature of the goods being perishable as well as the interest of Revenue as several importers in the past have subsequently not been traceable after taking release of goods in similar circumstances, we deem it fit and proper to modify the conditions of provisional release - appeal allowed subject to modification of terms.

Summary

Issues:
1. Provisional release of imported goods - terms and conditions.

Analysis:
The appeal before the Appellate Tribunal CESTAT MUMBAI revolves around the issue of the provisional release of imported areca nuts, claimed to be of Sri Lankan origin under the Indo-Sri Lanka Free Trade Agreement (ISFTA) and Customs Act, 1962. The appellant, a registered partnership firm in India, imported the goods with necessary permissions, including a 'no objection certificate' from the Plant & Quarantine department of Sri Lanka. However, during examination, it was suspected that the goods were not of Sri Lankan origin but of Indonesian origin, leading to a discrepancy in the declared value. The Revenue raised concerns about misdeclaration of country of origin and value of the goods, prompting the Commissioner of Customs to allow provisional release subject to stringent conditions.

The appellant challenged the harsh conditions of the provisional release order, citing the perishable nature of the goods and the uncertainty surrounding the resolution of the dispute regarding origin and value. The Revenue, on the other hand, maintained that there were grounds for suspicion regarding misdeclaration. After considering the arguments and recognizing the perishable nature of the goods, the Tribunal modified the conditions of provisional release. The Tribunal confirmed the requirement of a bond for the full assessable value but reduced the bank guarantee amount by half. The condition related to the production of approval from the Food Safety and Standards Authority of India (FSSAI) remained unchanged, although the appellant had already fulfilled this requirement as per the Bill of Entry.

In conclusion, the appeal was allowed with the modified conditions for provisional release. The Tribunal directed the concerned authority to release the goods within two weeks from the date of compliance with the revised conditions. The appeal was disposed of accordingly, with the order to be given dasti.