2022 (11) TMI 602 - AT - Customs

Seeking provisional release of seized containers - requirement of execution of bond supported by Bank Guarantee - HELD THAT - Apparently in this case, against the estimated value of Rs.64,26,000/- of the seized goods, appellant has been directed to execute a bond of the estimated value supported by bank guarantee i.e. 50% of the estimated value. The Revenue authorities are directed to accept the offer made and provisionally release the goods on execution of a bond of value of Rs.64,26,000/- supported by bank guarantee of Rs.10,00,000/- for allowing the goods back to town. All other conditions as specified in the provisional release order dated 01.09.2021 shall stand. Appeal disposed off.

Summary

Issues: Provisional release of seized goods, Bond value determination

Analysis:
1. Provisional Release of Seized Goods:
- The appellant, an exporter, filed Shipping Bills declaring goods as 'Crushed copper slag used for industrial cleaning.'
- Goods were detained by authorities due to misclassification/misdeclaration under HS Code.
- Delay in shipment led to cancellation of export order by foreign buyer.
- Appellant requested provisional release multiple times due to detention.
- Authorities demanded a bond and bank guarantee for provisional release.

2. Bond Value Determination:
- Appellant appealed against the bond value set by Revenue authorities.
- Appellant requested leniency in security value citing a similar case where JNCH issued a provisional release order with a lower bond value.
- After hearing arguments, the Tribunal noted the discrepancy in bond values set by different authorities.
- Tribunal considered the order issued by JNCH and directed Revenue authorities to accept a reduced bond value and bank guarantee for provisional release.
- The Tribunal ordered the provisional release of goods on execution of a bond and bank guarantee as per the revised values.

This judgment primarily dealt with the provisional release of seized goods by the Revenue authorities and the determination of the bond value required for such release. The Tribunal reviewed the case where the appellant sought leniency in the security value based on a similar case's precedent set by JNCH. After considering the arguments and discrepancies in bond values, the Tribunal directed the Revenue authorities to accept a reduced bond value and bank guarantee for the provisional release of the goods, aligning with the order issued by JNCH in a similar case. Ultimately, the appeal was disposed of in favor of the appellant, allowing the goods to be released provisionally based on the revised bond value and bank guarantee.