9911796707
TMI Blog2024 (8) TMI 1417X X X X Extracts X X X X X X X X Extracts X X X X ..... ng to be exported and unnecessarily detention charges, container rental charges etc. are being incurred - HELD THAT:- Respondent No.3 has annexed documents relating to various other cases where Petitioner has been imposed with penalty which, according to Dr. Kantawala, are under challenge in this Court. In the affidavit-in-reply, it appears that this past history of Petitioner is being 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 s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) 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 to the Customs area, samples were collected for 3 shipping bills and with regard to those 3 shipping bills, a Let Export Order ( LEO ) was issued by Customs Department. 5. On 26th April 2024, Respondent No. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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). Therefore, in view of Para 4 of the Board Circular No. 01/2011 dated 04.01.2011 read with Sec. 110A of the Customs Act, 1962, the adjudicating authority has allowed provisional release of the goods on execution of Bond equivalent to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er 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 should be allowed exportation provisionally. The exporters in these cases are required to execute a Bond of an amount equal to the value of goods and furnish appropriate security in order to cover the redemption fine and penalty in case goods are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ith 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 conditions as the adjudicating authority may require where goods are seized under Section 110A. In this case admittedly there is no seizure of any goods. 11. In the circumstances, we quash and set aside the impugned communication dated 18th June 2024. Responde ..... X X X X Extracts X X X X X X X X Extracts X X X X
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