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TMI Blog2022 (4) TMI 216X X X X Extracts X X X X X X X X Extracts X X X X ..... . of the said Circular, the Bank Guarantee should include the differential duty, the amount of fine that may be levied in lieu of confiscation under Section 125 of the Customs Act, 1962 and the amount of penalties that may be levied under Customs Act, 1962. The said Circular gives discretion to the Competent Authority to increase or decrease the amount of security deposit depending on facts of the case. In the instant case the Competent Authority has fixed the security amount as 2.5 times the duty amount. From the defense presented by the appellant, it has not been denied that the goods seized were imported goods. The grounds of appeal do not contest the quantification of duty on merits as there is no specific arguments in the appeal mem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... led by M/s Mukesh Steel against order of Commissioner (Appeals) upholding the order of Deputy Commissioner prescribing the terms of Provisional release under Section 110A of the Customs Act, 1962. 1.1 The facts of the case are that during the course of appellants premises cold rolled stainless steel coils / circles were placed under seizure by the Intelligence Officer, Directorate of Revenue Intelligence on 13.10.2020. During the investigation statement of Proprietor Shri Mukesh Mittal of the appellant, M/s Mukesh Steel was recorded on 19.08.2020, 11.09.2020, 14.09.2020, 21.09.2020 and 29.09.2020. The seizure memo records that the appellant had the undervaluation. Later on statement of Shri Amil Mittal, uncle of Shri Mukesh Mittal was re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the said quantity was placed under seizure on 13.10.2020. 75% of the goods remained detained for no reason for a period of almost 8 months. 2.1 She pointed out that majority of the goods were domestically procured. She relied on the decision of Tribunal in case of Witteneia Multitrading Pvt. Ltd. Vide Final Order No. 11130 of 2020 dated 16.07.2020 wherein the goods were released on furnishing a bond of total value with bank guarantee of only 50% of the total duty involved. She also relied on the decision of Delhi High Court in the case of Spirotech Heat Exchangers Pvt. Ltd. reported at 2016 (341) ELT 110 (Del.) wherein provisional release was allowed on condition of a bond equal to 100% of the value of goods and bank guarantee for 30% d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... roviso, the time limit for issue of Show Cause Notice within six months does not apply. He further pointed out that the case is still under investigation and Show Cause Notice can only be issued after completion of investigation. 4. We have considered rival contentions. 5. This appeal is against an order fixing the terms of provisional release of goods sought by the appellant. The value of goods is ₹ 1,91,91,322.23 and the approximate differential duty comes to ₹ 20,65,915/-. The competent authority has fixed the terms of provisional release as a bond equal to goods and bank guarantee equal to 2.5% times the duty amount. The competent authority has relied on circular no. 35 of 2017-Cus dated 16.08.2017. Para 2 of the said ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he competent authority shall take into account the nature of the seized goods, the duty and charges payable on the said goods, their market price and the estimated margin of profit; iii. amount of penalties that may be levied under the Customs Act, 1962, as applicable, at the time of adjudication of the case. 2.3 Depending on the specific nature of a case, the competent authority may, for reasons to be recorded in writing, increase or decrease the amount of security deposit as indicated above. 6. It is apparent that in terms of clause i, ii and iii of para 2.2. of the said Circular, the Bank Guarantee should include the differential duty, the amount of fine that may be levied in lieu of confiscation under Section 125 of the Cu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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