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TMI Blog2013 (4) TMI 363X X X X Extracts X X X X X X X X Extracts X X X X ..... petitioner shall deposit with the customs authorities, 50% of the differential duty i.e., the difference between the value declared by them and the value provisionally assessed by the Department. The investigation is yet to be completed and adjudication is also to be done. Therefore, it is needless to state that this order shall not stand in the way of the respondents to proceed with the investigation and also the adjudication process. With the above observations and directions, the Writ Petition is disposed of. - W.P.No.3655 of 2013 - - - Dated:- 2-4-2013 - V. Dhanapalan,J. For the Petitioner : Mr. A. K. Jayaraj For the Respondents : Mr. Vikram Ramakrishnan, ORDER Heard Mr.A.K.Jayaraj, learned counsel for the petitioner and Mr.Vikram Ramakrishnan, learned Central Government Standing Counsel appearing for the respondents. 2. The petitioner has filed this writ petition for a direction to the respondents to release the goods viz., 93 Pallets i.e. 26.00208 M/Tons of Tissue Paper, imported vide Bill of Entry No.8998733, dated 11.01.2013, on the value declared by the petitioner at USD 405 per M/Ton and USD 10530.84 (CIF), Chennai totally. 3. The case of the peti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tioner has filed this writ petition for the above relief. 4. The respondents have filed counter affidavit, wherein, they have stated as follows: 4.1. The petitioner, M/s.Veetrag Enterprises had filed a Bill of Entry No.8998733/11.03.2013 for the import of goods declared as "Tissue paper for packing wrapping 480 sheets/ream 17 GSM" from China (classifying the same under CTH 48025450). The declared quantity is 26.00208 mts, at a unit price of USD 405/mts (CIF). The assessable value is Rs.5,83,393/- and the applicable duty @ 10%+6%+3%+4% is Rs.1,27,934/-. The said Bill of Entry was selected by the system for assessment and examination and while assessing, the concerned Assessing Officer had a doubt over the classification claimed by the petitioner and even the description due to the fact that "tissue paper" gets covered under different tariff headings. In this regard, a query was raised to the petitioner in the system on 01.01.2013 itself calling upon the petitioner to furnish the requisite import documents and also to justify the CTH claimed by them. But, the petitioner has neither furnished the import documents and clarification regarding the CTH nor replied to the query of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ased for many other importers in the same Custom House for more or less of the same value and furthermore, the goods imported by them are un-branded goods, cheaper in quality and imported from China and they are not restricted or prohibited goods. It is the grievance of the petitioner that they have borrowed substantial amount from third parties for the import of the subject goods and if the goods imported continue to remain in the hands of the respondent, the petitioner's business will be in jeopardy. 7. It is the case of the respondents that the goods in question were undervalued and seized under the Customs Act and further investigation in the subject matter is in progress and hence, release of goods as sought for by the petitioner could not be entertained. 8. While examining the claim of the petitioner for release of the goods in question, the circumstances under which the import was done, have to be looked into and thereafter, the value so declared by the petitioner is a matter to be taken into account. The petitioner declared the value of the goods as USD 10,530.84 (CIF) Chennai, totally, which according to the respondents is low. Further investigation is yet to be comple ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the petitioner, the condition imposed for provisional release of the goods is only by furnishing a bank guarantee and in order to safeguard the interest of the Department, the petitioner herein may be directed to pay 30% of the differential duty, furnish bank guarantee for 20% of the differential duty and for the remaining 50%, the petitioner-Company shall furnish a bond. He would further contend that in case, if the Department succeeds in the adjudication proceedings, it is not possible for the Department to recover any 'amount' if the goods are released. 11. It is seen that in Notification No.81/2011-Customs (N.T.), dated 25.11.2011, issued by the Government of India, Ministry of Finance, Department of Revenue (Central Board of Excise and Customs), the Customs (Provisional Duty Assessment) Regulations, 2011 were brought into force, which inter-alia provided the following:- "1. Short title and commencement: (1) These regulations may be called the Customs (Provisional Duty Assessment) Regulations, 2011. (2) They shall come into force on the date of their publication in the Official Gazette. 2. Conditions for allowing provisional assessment.- (1) Where- (a) an impo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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