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TMI Blog2016 (11) TMI 1081X X X X Extracts X X X X X X X X Extracts X X X X ..... nt Bank to enable the petitioner to furnish a Bank Guarantee for ₹ 85 lakhs. Whether the petitioner would be entitled to a direction for provisional release of the subsequent cargo? - Held that: - the goods were imported and Bill of Entry was filed in 2011. Though the High Court of Delhi issued directions to consider the petitioner s application for provisional release within a period of four weeks from 13.12.2012, the order was not complied with by the Department. The adjudication of the show cause notice has taken almost three years and the order-in-original was passed on 16.12.2015. Thus, the petitioner s case is that the goods cannot be marketed and have to be destroyed and in fact their latest representation to the second resp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ith the consent of the learned counsel appearing on either side, the Writ Petition itself is taken up for disposal. 2. The petitioner is a Company incorporated under the provisions of the Companies Act, 1956, in the year 2007, consisting of three Directors and one of its Director was appointed as the Authorized representative so as to prosecute these proceedings. The petitioner is stated to be engaged in the business of timeshare vacation in tie-up with RCI-In International Company dealing with exchange holidays and sale of discount cards in tie-up with various restaurants, shopping companies, etc. It appears that the petitioner came to know about certain products sold by the other National and International Companies and as the petition ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... proceeded in the manner contemplated under the provisions of the Customs Act, resulting in show cause notice being issued. (iii) At that juncture, the petitioner filed a Writ Petition before the High Court of Delhi in W.P.(C) 6660 of 2012, for issuing a direction to the Customs Authorities to exercise their powers under section 110A of the Customs Act, and permit provisional release of goods. The Court while disposing of the Writ Petition, by an order dated 13.12.2012, noted that out of three consignments, two consignments have already been cleared by executing a Bond for the full value of the seized goods and the only consignment which was remaining was, is the subject matter of Bill of Entry No.3431758 dated 06.05.2011. In fact in this ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and compensation for the loss suffered by the petitioner due to the alleged inaction of the respondents 1 to 3. 3.The learned Senior counsel appearing for the petitioner, on instructions, would submit that so far as the third relief sought for by the petitioner, i.e. for payment of godown charges and compensation, for the present, the petitioner does not press that relief, leaving it open to the petitioner to approach the appropriate forum at the appropriate time. This submission is placed on record, and accordingly, the relief No.(iii) is not decided and left open to the petitioner to work out the same in accordance with law. 4. With regard the first relief sought for by the petitioner, namely the release of the Bank Guarantee, it i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... riod of seven days from date of receipt of the representation, effect cancellation of the Bank Guarantee and duly intimate the same to the fourth respondent Bank with a copy marked to the petitioner. 7. This leaves us with the only issue, as to whether the petitioner would be entitled to a direction for provisional release of the subsequent cargo. 8. As rightly pointed out by the learned Senior Panel Counsel appearing for the second respondent, the power of provisional release under section 110A of the Act could be exercised pending the order of adjudication, by releasing the same to the owner of the goods and taking a bond from him in an appropriate form with such security and condition as the adjudicating authority may require. 9 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... power and moreso in the case of the CEGAT to pass such interim orders as are necessary for the purpose of ensuring that the main relief sought in the appeal is available to the party at the end of the proceedings. 11. In the instant case, the goods were imported and Bill of Entry was filed in 2011. Though the High Court of Delhi issued directions to consider the petitioner s application for provisional release within a period of four weeks from 13.12.2012, the order was not complied with by the Department. The adjudication of the show cause notice has taken almost three years and the order-in-original was passed on 16.12.2015. Thus, the petitioner s case is that the goods cannot be marketed and have to be destroyed and in fact their lat ..... X X X X Extracts X X X X X X X X Extracts X X X X
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