2021 (11) TMI 624 - AT - Customs

Seeking provisional release of detained goods - extension of the period for issuance of show-cause notice under Section 110 (2) (as amended) of the Customs Act, 1962 - Section 110A of the Customs Act, 1962 - HELD THAT - The goods under detention/seizure are neither prohibited items nor restricted items and hence the same are not subjected to any statutory permission - the appellants are directed to execute the bond backed by the Bank Guarantee. On execution of bond and bank guarantee, the Adjudicating Authority shall grant the provisional release of the consignment. It is also directed that the quantum of bond should be sufficient enough to cover the duty, redemption fine and penalty likely to be imposed during the adjudication taking into consideration the various circulars issued by the CBEC - the Ld. Principal Commissioner (Prev.) is directed to consider the request made on behalf of the appellants for provisional release of the goods. Appeal disposed off.

Summary

Issues:
Extension of time for issuance of show-cause notice under Section 124 of the Customs Act, 1962; Provisional release of seized goods pending adjudication under Section 110A of the Customs Act, 1962.

Extension of Time for Issuance of Show-Cause Notice:
The appeal challenged the Order-in-Original extending the time for issuance of a show-cause notice under Section 124 of the Customs Act, 1962. The appellant's advocate argued that the extension was arbitrary and should be set aside. The Customs Authorities did not respond to requests for provisional release of the seized goods, causing the appellant losses. The Revenue's representative contended that the extension was valid under Section 110 (2) of the Customs Act, 1962, as amended in 2018. The seized goods were alleged to be branded items possibly violating Intellectual Property Rights. The judge observed both sides and examined the appeal records.

Provisional Release of Seized Goods:
The Customs Act, 1962, Section 110A allows provisional release of seized goods pending adjudication. The Central Board of Excise & Customs issued guidelines for this release, specifying cases where provisional release is not allowed. The appellant's goods were not prohibited or restricted items, and the appellant expressed willingness to execute a bond for the full value as per the adjudication order. The judge directed the appellants to execute a bond backed by a Bank Guarantee for the full value of the goods, covering duty, redemption fine, and potential penalties. The Principal Commissioner was instructed to consider the request for provisional release based on these conditions.

This comprehensive analysis of the judgment addresses the issues of extension of time for issuance of show-cause notice and provisional release of seized goods, providing a detailed breakdown of the arguments presented by both parties and the judge's decision based on the relevant legal provisions and guidelines.