2024 (2) TMI 34 - HC - Customs

Seeking provisional release of goods - Ethanol Absolute - requirement of furnishing Bank Guarantee - HELD THAT - There is no dispute whatsoever in regard to the classification as accepted by this Court in the adjudication of the earlier Petition while granting provisional release of the goods in question. In fact it is surprising, when a stand is now being taken on behalf of the department, that all circumstances which were relevant in respect of the earlier adjudication although are present in regard to the import in question, however, the department is now taking a different approach by putting the Petitioner to different terms, namely that such provisional release would be permitted on the Petitioner s furnishing a bank guarantee. In this view of the matter, on similar imports a different yardstick cannot be applied by the department. Moreover, in our opinion, applying different parameters for the same goods would amount to an arbitrary action on the part of the Designated Officer. Apart from this, the approach is patently contrary to the orders passed by this Court in the earlier proceedings filed by the Petitioner. The Respondents are directed to forthwith permit clearance of Ethanol Absolute covered under two Bills of Entry for Ex- Bond bearing Nos. 9165548 and 9165550 both dated 11.12.2023 filed by Petitioner for home consumption as the Petitioner has already furnished a bond - petition allowed.

Summary

Issues:
The issues involved in the judgment are related to the clearance of Ethanol Absolute covered under two Bills of Entry for Ex-Bond bearing Nos. 9165548 and 9165550 both dated 11.12.2023 filed by the Petitioner for home consumption. The key issues revolve around the classification of the goods, provisional release, and the terms set by the Respondents.

Classification and Provisional Release:
The Petitioner approached the Court seeking clearance of Ethanol Absolute covered under two Bills of Entry. The Court noted that the Petitioner had been importing such materials for many decades and had paid customs duty at the accepted classification of 98.02. The Court allowed provisional release of the goods under the bill of entry in question on execution of a bond, emphasizing the Petitioner's history as a regular importer and the absence of justifications for the Respondents to refuse provisional release. The Court highlighted that the goods were not prohibited, and the dispute mainly concerned classification, which had been permitted for clearance for many years. The Court ordered the Respondents to release the goods within two weeks from the execution of the bond.

Challenges and Subsequent Proceedings:
Despite the Court's orders, the release of goods faced challenges from State Excise Officials, prompting the Petitioner to file further proceedings. The Court observed that the officials had acted in a high-handed manner, possibly influenced by private parties competing with the Petitioner. The Court directed the State Excise Department to release the goods and conduct an inquiry against the officials involved. Subsequently, the Petitioner faced similar issues in the present proceedings, where the Respondents sought different terms for provisional release, including a bank guarantee. The Court emphasized that its previous orders were binding on the Respondents, and applying different parameters for similar imports would be arbitrary and contrary to the earlier proceedings. The Court directed the Respondents to permit clearance of the goods under the two Bills of Entry filed by the Petitioner for home consumption, as the Petitioner had already furnished a bond, ordering the release within one week.

Conclusion:
In conclusion, the Court granted the relief sought by the Petitioner, directing the Respondents to permit clearance of the Ethanol Absolute covered under the specified Bills of Entry. The Court's decision was based on the consistency of classification, the Petitioner's compliance with previous orders, and the absence of justification for imposing additional terms for provisional release. The Petition was disposed of in favor of the Petitioner without any costs.