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2016 (9) TMI 223 - HC - CustomsDemand alongwith interest - Section 28(2) of the Customs Act, 1962 - clearance of consignment as project contract, but failure to produce the required documents as per section 7 of the Project Import Regulations, 1986 for finalisation of the project - goods were bonded in the warehouse and a Bank Guarantee was given by the petitioner - goods having not been cleared within the statutory period, the Customs Authorities have brought the goods for sale and the sale was completed and taken delivery by the bidder. Held that:- an interim order was granted on the ground that the petitioner had furnished a Bank Guarantee covering the entire amount. However, it was subsequently, brought to the notice of the Court by the third respondent that the petitioner's Bank Guarantee dated 06.07.1990 was valid only upto 26.01.1991 and the same stand cancelled on 28.01.1993. Thus, the respondent Department cannot make a claim against the third respondent Bank and this observation would protect the interest of the third respondent Bank. Therefore, this Court is inclined to issue appropriate directions to the second respondent to take note of the subsequent events, the fact that the goods in question were sold and the sale proceeds have been remitted to the Customs Department, for which purpose the order passed by the second respondent requires to be set aside. - Matter remanded back
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