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TMI Blog2011 (8) TMI 947X X X X Extracts X X X X X X X X Extracts X X X X ..... material which has emerged during the course of investigation and which has been adverted to in the affidavit in reply, the Petitioner cannot be allowed to seek unconditional release of the seized goods - Held that: the ends of justice would be met, if a direction is issued to the effect that the Petitioner shall furnish a bank guarantee of Rs. 40,00,000/- of a Nationalised Bank, and a P.D. bond to the satisfaction of the adjudicating authority, as a condition precedent for the provisional release of the goods. Upon furnishing of a bank guarantee and bond as directed hereinabove, the Respondent shall provisionally release the balance 7 cranes - Petition is allowed - 5242 of 2011 - - - Dated:- 17-8-2011 - Dr. D.Y. Chandrachud and A.A. Sa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Rs. 13,54,386.66. In addition, the Petitioner has been called upon to furnish an undertaking to produce the cranes for inspection whenever required and not to dispose of the cranes without prior intimation. The Petitioner, since cleared 2 of the seized cranes mentioned at Sr. No. 8 and 9 of the tabulated statement contained in the 2nd Respondent s letter dated 1 April 2011. The dispute now relates to the balance 7 that remain. 3. From the material on record, it has also emerged before the Court that the Petitioner has deposited an amount of Rs. 80,00,000/- with the Respondents when he was called for investigation by the Directorate of Revenue Intelligence. Details of these payments are recorded in letters dated 29 March 2011 and 6 Jun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r of the differential amount of the value of cranes and of the freight to overseas parties through un-official channels. 5. The Petitioner has filed a rejoinder controverting the allegations of the Revenue. The contention of the Petitioner is that the amounts deposited were under duress. The Petitioner also claims that the statement of Shri Natwar Dalmiya was recorded on 29 March 2011 under duress but was sought to be retracted on 31 March 2011. 6. On behalf of the Petitioner, it has been submitted that the conditions which have been imposed for the provisional release of the goods are arbitrary and harsh. There was no warrant to require any bank guarantee. The learned Counsel submitted that no notice to show cause has been issued as ye ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... would not secure duty, redemption fine and penalty. Counsel urges that under Section 110A, the adjudicating authority can require a bond and security while permitting release of seized goods. Since the Petitioner now seeks to sell the goods in the course of business, the requirement of a bank guarantee was all the more necessary to secure the Revenue. 8. Section 110A of the Customs Act, 1962 provides for provisional release of goods pending adjudication. Under Section 110A, the adjudicating authority can impose a condition requiring a bond and furnishing of security while ordering the release of seized goods. Conditions can be imposed to secure the interests of the Revenue. The provisions of Section 110A have been recently construed in a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any finding at this stage since that is a matter for adjudication after a show cause notice is issued. The purpose of Section 110A is that while releasing the goods which are seized, the interests of the Revenue should be adequately safeguarded. The Petitioner has specifically stated that it would be selling the seized cranes in the normal course of business. Two of the nine cranes were released on the furnishing of a guarantee and bond as directed. Especially since the remaining cranes are intended to be sold, the deposit which has been effected would have to be supplemented by a bank guarantee to secure duty, redemption fine and a possible penalty. The Petitioner has deposited an amount of Rs. 88,60,000/-. In our view, the ends of justice ..... X X X X Extracts X X X X X X X X Extracts X X X X
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