9911796707
TMI Blog2024 (8) TMI 1417X X X X Extracts X X X X X X X X Extracts X X X X ..... /w Mr. Saket R. Ketkar for Respondent Nos.2 to 5. JUDGMENT ( Per K. R. Shriram, J. ) 1. Since pleadings are completed, with the consent of the counsel, the Court decided to dispose the petition. 2. The following are three substantial prayers made in the petition:- "a) That this Hon'ble Court be pleased to issue a Writ of Certiorari or Writ in the nature of Certiorari or any other appropriate Writ, Order or Direction calling for the records and proceedings dealing with the Impugned Hold Letter No. 13/2024-25/SIIB(X) bearing CUS/SIIB/MISC/327/2024-SIIB(E) dated F.No. 26.04.2024 (Exhibit E hereto) and after going into the legality, propriety, and validity thereof, to quash and set aside the same. b) That this Hon'ble Court ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ., (i) to submit bond for 100% FOB value of the goods and (ii) to submit cash security / bank guarantee of Rs.68,65,141/-. It is Petitioner's case that under Section 110A of the Customs Act, 1962 ("the Act") only when there is a seizure of goods under Section 110 of the Act can such a condition be imposed. It is Petitioner's case that there has been no seizure whatsoever under any provisions of the Act let alone under Section 110 of the Act. 4. Petitioner received an export order from one Fab Textile Carpets Trading Co. LLC on 3rd January 2023 for silk fabrics, hand loom silk scarves and hand-knitted woollen scarves. Petitioner filed 14 shipping bills all dated 10th April 2024 and moved cargo to the Customs area. After the goods were moved ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng narrated to justify insistence of a security by way of bank guarantee / cash security. According to Respondent No.3 since investigation is in progress, the adjudicating authority has allowed provisional release of the goods on execution of bond equivalent to total FOB value of Rs.4,57,67,604/- and furnishing a security cover in form of bank guarantee / cash security of Rs.68,65,140.60/- being 15% of the declared FOB value. 8. Respondent No.3 has relied on paragraph 4 of the Board Circular No.01 of 2011 dated 4th January 2011. The relevant portion of paragraph 7 reads as under:- "7... ... The investigation is under progress and meanwhile the exporter has requested for the provisional release of the goods for Back to Town (BTT). Ther ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or being liable to confiscation under the Customs Act, 1962, the same may be ordered to be released provisionally on execution of a Bond of an amount equivalent to the value of goods along with furnishing an appropriate security in order to cover the redemption fine and penalty. (b) In case the export goods are either suspected to be prohibited or found to be prohibited in terms of the Customs Act, 1962 or ITC (HS), the same should be seized and appropriate action for confiscation and penalty initiated. (c) In case the export goods are suspected of mis- declaration or where declaration is to be confirmed and further enquiry/confirmatory test or expert opinion is required (as in case of chemicals or textiles materials), the goods shoul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on 110A of the Act. Moreover, Respondent No.3 has strangely submitted that if Petitioner had asked for exportation of goods, provisional clearance for export would have been given, but since Petitioner is seeking 'back to town' the same can be allowed with revenue safeguard, subject to a bank guarantee amounting to 15% of FOB value alongwith bond. This according to us defies sense. Just because the exporter has asked the goods to be taken 'back to town' instead of provisional clearance for export which would have been, the situation would not change and would not be any different from provisional clearance for exportation. 10. Moreover, Section 110A only provides for releasing goods to the owner on taking a bond with such security and cond ..... X X X X Extracts X X X X X X X X Extracts X X X X
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