2013 (3) TMI 28 - HC - Customs

Provisional release of goods - held that - it is clear that pending the order of the adjudicating officer, goods can be released to the owner, on taking a bond from him in the proper form with such security and conditions if the adjudicating officer may require. Further, it is also brought to our notice the recent Notification No. 81/2011, dated 25-11-2011, issued by the Government of India, wherein it is stated that if the importer or exporter, as the case may be, execute a bond in an amount equal to the difference between the duty that may be finally assessed or re-assessed and the provisional duty and deposits with the proper officer such sum not exceeding twenty percent of the provisional duty as the proper officer may direct, the proper officer may assess the duty on the goods provisionally at an amount equal to the provisional duty. Respondents directed that the goods of the respondents shall be cleared by the appellants herein on the respondents furnishing a bank guarantee of 30% of the differential duty to the satisfaction of the Commissioner of Customs.

Summary

Issues Involved:
Interim direction for release of goods pending adjudication, valuation of goods, provisional release of goods under Section 110(A) of the Customs Act, validity of order passed by the learned Single Judge, payment of duty, differential duty, personal bond, compliance with court directions, modification of single Judge's order, final adjudication proceedings.

Interim Direction for Release of Goods Pending Adjudication:
The respondent, engaged in import and export, imported goods with declared values. The appellant did not pass any order under Section 110(A) of the Customs Act for provisional release despite repeated reminders. The respondent filed a writ petition seeking release, which was granted by the Court on payment of duty. The appellant challenged this interim direction, arguing for a different payment structure based on revaluation by Revenue.

Valuation of Goods and Provisional Release under Section 110(A) of the Customs Act:
The appellant contended that the value declared by the respondent was low, leading to revaluation by Revenue. The Court noted that goods can be released provisionally pending adjudication under Section 110(A), allowing for release on a bond with security. The recent Notification No. 81/2011 provided guidelines for provisional duty assessment based on bond execution by the importer or exporter.

Validity of Order Passed by the Learned Single Judge:
The appellant argued that the Single Judge erred in directing release on payment of only duty amount, advocating for a different payment structure. The respondent expressed willingness to pay declared duty and a portion of differential duty, offering a personal bond for the rest. The Court considered past judgments and the Supreme Court's stance on similar issues, emphasizing a balanced approach to payment and bond requirements.

Compliance with Court Directions and Modification of Single Judge's Order:
The Court, following previous judgments, directed the respondent to pay declared duty, a portion of differential duty, and execute a personal bond. Compliance was mandated within two weeks for goods release, subject to final adjudication proceedings. The order modified the Single Judge's decision, allowing for early disposal of the writ petition by either party.

Final Adjudication Proceedings:
The Court emphasized that the release of goods was contingent on final adjudication proceedings by the concerned authorities. Both parties were granted liberty to seek early disposal of the writ petition. The writ appeal was disposed of accordingly, with associated motions closed and no costs imposed.