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TMI Blog2014 (4) TMI 150X X X X Extracts X X X X X X X X Extracts X X X X ..... guarantee would not be appropriate. When a sizeable sum of ₹ 3 crores is already recovered by one arm of the Union of India, further condition of bank guarantee merely for using the software pending further investigation and possible adjudication would not be justified - It is directed that the petitioner would be allowed to utilize such seized machinery along with the installed software for its manufacturing activity in the machines imported and installed at its Surat unit on conditions - Remaining conditions of supratnama as well as the provisional release orders except furnishing bank guarantee shall remain in operation. Territorial jurisdiction – Held that:- The petitioner has manufacturing unit at Surat - It has its machi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t. At that stage, the Customs department initiated investigation regarding the customs duty liability on such imported software. These investigations are pertaining to 37 imports which are part of the 74 instances under the scanner of DGCEI. The Customs authorities prima facie believed that the petitioner did not include the price of the software in the machineries imported and thereby paid customs duty only on the machineries evading customs duty payable on the software. At that stage, the petitioner filed this petition. Initially the goods were seized. Under a supratnama dated 17.1.2014, the goods were returned to the petitioner for safe keeping. One of the conditions was that the goods are being returned only for safe custody with ins ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oner can be permitted to use the software for its manufacturing activity since rest of the prayers are not pressed. The petitioner has been contending that the DGCEI has already recovered more than Rs.3 crores towards possible duty liability under coercion. In any case, there can either be service tax or customs duty leviable though the petitioner contends that neither is payable in the present case. The inquiry of the Customs authorities is pertaining to 37 items imported out of 74 import instances being already looked into by the DGCEI. These factual aspects are not in serious dispute. Under the circumstances, we are of the opinion that use of the software should be allowed to the petitioner by relaxing the rigourous conditions impo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng conditions : (1) The petitioner shall give a bond of the full value indicated by the authorities in their two orders of provisional release. (2)The petitioner shall not remove the goods including the machines from its premises or sell, transfer, or create any charge thereon, or make any changes in the same and use the software only for the purpose of manufacturing activity as was being done. (3)The petitioner shall file an undertaking before the Department to this effect within a period of one week from today. (4)The petitioner shall not receive any amount out of the said sum of Rs.3.21crores recovered by the DGCEI even if the same is released in favour of the petitioner. If any such event arises, the petitioner shall first i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... no part of cause of action can be said to have arisen within the territorial jurisdiction of this High Court. It is difficult for us to accept the submission of Mr. Shah that diamonds were received at Surat after being imported for which the petitioner is being proceeded, and therefore, apart of cause of action can be said to have been arisen within the territorial jurisdiction of his High Court. We are of the view that the fact that diamonds were received at Surat, even if believed to be true is not such a fact which by itself would confer territorial jurisdiction on this Court. We are of the view that this fact has no direct nexus or relevance so far as the main issues which are involved in the petition. It is no doubt true that in deter ..... X X X X Extracts X X X X X X X X Extracts X X X X
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