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2014 (1) TMI 123 - DELHI HIGH COURTStay of encashment of bank guarantees - Jurisdiction to invoke bank guarantee - Held that:- petitioner can really protest and object to invocation of the bank guarantee on the ground that imports under EPCG scheme were transferred and became liability of Sanya Hospitality Pvt. Ltd.. Letter dated 23.12.2011 shows that certain conditions had to be fulfilled and the Regional Authority had to take necessary action. Letter dated 11.04.2013 records that the conditions imposed were not fulfilled and licence was not transferred and endorsement was not made - petitioner has furnished a bank guarantee to the Customs Authorities, which could be invoked for loss caused or would be caused for violation of the terms of the bond. The letter invoking the guarantee states that terms of the bond have been violated. The petitioner has not filed the said bond on record. Guarantee is specific in terms and states that it can be invoked when there is a breach by the importer of any term and condition mentioned in the bond. There is no stipulation for show cause notice, reply and adjudication order. Terms of the bank guarantee do not stipulate that the same cannot be invoked till an adjudication order is passed. The petitioner was allowed to import capital goods on payment of 5% customs duty in view of the bond and the bank guarantee for the balance amount. The bank guarantee is for the unpaid customs duty and not in respect of penalty, interest etc. - Decided against appellants.
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