2021 (2) TMI 207 - AT - Customs

Provisional release of seized goods - condition of bank guarantee is exorbitant - seeking reduction in the amount of the bank guarantee - HELD THAT - This tribunal considering all the common facts came to the conclusion that for provisional release of the goods bond of the total value of the goods and bank guarantee of the amount of 50% of the total duty is sufficient. The seized goods shall be released on furnishing bond of total value of the goods with bank guarantee of the amount of 50% of the total duty - Appeal allowed - decided in favor of appellant.

Summary

Issues:
Reduction of bank guarantee amount for provisional release of seized goods.

Analysis:
The appellant challenged the order requiring a bank guarantee of a specific amount for the provisional release of their imported seized goods, deeming it exorbitant. The appellant's counsel argued that since the case involved common issues and goods as a previous case decided by the tribunal, a similar reduction in the bank guarantee amount should be granted. The revenue's representative contended that the stringent conditions were justified due to the seriousness of the fraud committed by the importers.

Upon reviewing the submissions and records, the tribunal noted the similarities between the present case and a previous case involving WITTENIA MULTITRADING PVT. LIMITED. Referring to the previous order, the tribunal highlighted the reduction of the bank guarantee amount to 50% of the total duty, indicating a precedent for such cases. The tribunal emphasized the need for consistency in decisions based on common facts and circumstances.

In the earlier case, the appellant had argued against the imposition of an excessive bank guarantee equivalent to the duty amount for provisional release, citing various legal precedents. The revenue's representative, however, asserted that the seizure was justified due to suspected duty evasion. The tribunal acknowledged the prima facie evidence of fraudulent exemption claims by the appellant but emphasized that a detailed investigation was pending. In light of the appellant's request for re-export and the need for leniency, the tribunal decided to release the goods provisionally upon furnishing a bond and a reduced bank guarantee amount.

Based on the previous order and the similar nature of the cases, the tribunal allowed the appeal, granting the provisional release of the seized goods upon the appellant furnishing a bond of the total value of the goods with a bank guarantee amounting to 50% of the total duty. This decision aimed to balance the interests of both parties while ensuring compliance with customs regulations and the ongoing investigation.

The tribunal's decision, delivered on 04.02.2021, provided clarity on the reduction of the bank guarantee amount for the provisional release of seized goods, establishing a consistent approach based on previous rulings and the specific circumstances of the case.