TMI Blog2012 (4) TMI 484X X X X Extracts X X X X X X X X Extracts X X X X ..... reason for non releasing of the goods is that the petitioner has undervalued the goods at USD 325 per MT - writ petition is disposed of - provisional release of the goods in regard to deposit with the custom authorities the duty payable on the value declared by them i.e. USD 325 Per MT and 50% of the differential duty - Writ Petition (MD).No.1511 of 2012 - - - Dated:- 22-2-2012 - MR.JUSTICE V.DHANAPALAN, J. For Petitioner ... Mr.A.K.Jayaraj For Respondents ... Mr.R.Aravindan ORDER The petitioner has filed this writ petition for a Mandamus directing the respondents to release the goods namely 71,924 MTS of residue Wax, imported vide Bill of Entry No.5345063, dated 30.11.2011 on the value declared by the petitioner ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... petitioner to deposit the duty amount of Rs.8,05,145/- and Bank Guarantee for Rs.14.23 lakhs being 30% of Market Value of Rs.47.44 lakhs as determined by Directorate of Revenue Intelligence, Thoothukudi and bond in the form Appendix-V for the assessable value of Rs.31,48,172/-, keeping in view to safeguard the revenue of the Department. The respondents also stated that the investigation is yet to be completed, so also the adjudication proceedings by the department. 4. Heard Mr.A.K.Jayaraj, learned counsel for the petitioner and Mr.R.Aravindan, learned standing counsel for the respondent department and this Court perused the documents filed in support of the submissions. 5. On analysis of the entire facts would reveal that the claim ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... MT. The same was verified by the Directorate of Revenue Intelligence, Thoothukudi and on verification, it was found that the value of the imported cargo had been undervalued by the petitioner. Based on the documents recovered by the Directorate of Revenue Intelligence, Tuticorin from other importers as well as National Input Data Base, the actual value of the Residue Wax appears to be USD 856.25 per MT, whereas the petitioner declared the value at USD 325 per MT. 8. In the above circumstances, to consider the request of the petitioner as well as to safeguard the revenue of the respondent department, a reference was sent to the petitioner by the Assistant Commissioner (Import Assessment), Customs House, Thoothukudi directing the petition ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oceedings also to be done thereafter. When such is the situation, what is the condition for provisional release to be made. 10. In this regard, the learned counsel for the petitioner relied on various decisions of this Court and also the decision of the Honourable Supreme Court in the case of Commissioner of Customs V. Navshakti Industries Private Limited, (2011 (269) ELT A146(SC)) wherein the Supreme Court has held as follows:- "having considered the facts and circumstances of the case and also taking notice of the fact that the goods in question are newsprint which is perishable in nature, we issue a direction that the goods of the respondents shall be cleared by the appellants herein on the respondents' furnishing a bank guarantee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the condition imposed for provisional release of the goods is only by a bank guarantee and in order to safeguard the interest of the department, the petitioner has to pay 30% of the deposits of the differential duty and 20% bank guarantee of the differential duty and for remaining 50%, he should furnish a bond. The learned counsel further submits that in case if the department succeeds in the adjudication proceedings, it is not possible for the department to recover any amount, if the goods are released. 13. It is seen that in Notification No.81/2011-Customs (N.T.), dated 25.11.2011 issued by the Government of India, Ministry of Finance, Department of Revenue (Central Board of Excise and Customs), in and by which the customs (Provisiona ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... D 325 per MT. Now the Directorate of Revenue Intelligence, Thoothukudi, on investigation found that the value of goods is USD 856.25 per MT. Therefore, the differential duty has to be paid even for the provisional release of the goods. The investigation has to be completed and thereafter, the adjudication has to be done for the assessment of the market value. Residue Wax cannot be kept for a long time and it will melt shortly. Therefore, for domestic consumption, the petitioner claimed for provisional release of the goods. In the light of the above stated legal position and the goods in question is not a prohibitory item under the provisions of the Act, it is admitted that the goods are imported from Turk 16. In the light of the above s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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