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2021 (7) TMI 688 - AT - CustomsProvisional release of seized goods - various types of imported fabrics - 100% Polyester Knitted Fabric - goods appeared to be of higher quality than what was declared - goods were made of elastomeric yarn or not - seizure of goods under section 110 of the Customs Act - enhancement of declared value - non-related parties. HELD THAT:- Section 110A provides that any goods seized under section 110, may, pending the order of the adjudicating authority, be released to the owner on taking a bond from him with such security and conditions as the adjudicating authority may require - Discretion is, therefore, cast upon the adjudicating authority for determining the value of the bond to be taken and the security deposit as also the conditions to be imposed while passing an order for provisional release of the goods. The exercise of this discretion has to be fair and reasonable and should not be exercised on irrelevant considerations. It needs to be noticed that the goods involved in the present two appeals were valued at US$ 2.83 per kg and, therefore, the said assessment order may not have any relevance. The appellant had also pointed out to the adjudicating authority that similar goods were allowed to be imported by other importers at much lower value at US$ 1.55 per kg by the Customs Authority after enhancement of the value of the goods. There is no discussion of this fact in the impugned orders. In the instant case, the appellants had declared the transaction value of the impugned goods in the Bill of Entries at 0.95 US$ per Kg as per the sales contract between the supplier and the appellant. It is important to note that the appellants and the supplier are not related parties. However, the transaction value declared by the appellant was sought to be re-determined by the Customs department without providing any reasons - In the impugned order, the differential duty has been calculated at the rate of US$ 2.83$ per kg solely on the basis of the DRI letter dated 17.12.2020, which has not been provided to the appellant - The same goods, it has been stated by the appellants, were allowed to be imported by other importers at much lower value at US$ 1.55/kg by the Customs Authorities after enhancement of value, in comparison to the value at US$ 2.83 Per Kg enhanced for the impugned goods. Details of these imports were also brought to the notice of the Customs Authorities, but they have not been discussed. The provisional release order is modified - Elvance shall execute a bond for ₹ 2 crores and furnish a bank guarantee or a cash security (as decided by the appellant) for ₹ 20 lakhs - Sedna shall execute a bond for ₹ 1 crore and furnish a bank guarantee or a cash security (as decided by the appellant) for ₹ 10 lakhs - Upon execution of the bond and furnishing the bank guarantee/cash security, as directed above, the goods shall forthwith be released and not later than ten days from the date of executing the bond and furnishing security. Appeal allowed in part.
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