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2016 (9) TMI 929 - AT - CustomsImposition of redemption fine - provisional release of goods on payment of full differential duty and furnishing Bank Guarantee of ₹ 65 lakhs, besides executing a Bond of ₹ 33 crores - Barge - Section129E of the Customs Act, 1962 - relief sought under Section 35F - The asset has been confiscated and has been offered for redemption on payment of redemption fine. The same has been released on execution of bond and a bank guarantee. In these circumstances can the appellant continue to use the provisionally released asset without executing option of redemption? Held that: - Ideally the offer of redemption should be valid for a limited period and cannot be enjoyed for unlimited period. After confiscation the ship is a property of the state. Before it was confiscated it was released to the appellant provisionally. Till confiscation the applicants could have enjoyed the benefits of the seized property provisionally released to them. After confiscation the property of the confiscated goods vests in the state. The applicants wish to enjoy the benefit without fulfilling their obligation of paying redemption fine. Therefore more stringent conditions need to be put for allowing further use of the asset. The applicants to execute bank guarantee of ₹ 2,85,00,000/- in addition to existing bank guarantee. On furnishing of such guarantee the respondents will permit the applicant’s to sail out of India the barge subject to condition that the applicant shall file an undertaking before authority stating the purpose of taking out the vessel and to bring back within a period of four months from the date of release of the vessel. Petition disposed off - decided against petitioner.
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