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2022 (4) TMI 216 - AT - CustomsSeeking provisional release of goods - no notice issued for seizure of goods - quantum of security - Section 110A of the Customs Act, 1962 - HELD THAT:- This appeal is against an order fixing the terms of provisional release of goods sought by the appellant. The value of goods is ₹ 1,91,91,322.23 and the approximate differential duty comes to ₹ 20,65,915/-. The competent authority has fixed the terms of provisional release as a bond equal to goods and bank guarantee equal to 2.5% times the duty amount. The competent authority has relied on circular no. 35 of 2017-Cus dated 16.08.2017 - It is apparent that in terms of clause i, ii and iii of para 2.2. of the said Circular, the Bank Guarantee should include the differential duty, the amount of fine that may be levied in lieu of confiscation under Section 125 of the Customs Act, 1962 and the amount of penalties that may be levied under Customs Act, 1962. The said Circular gives discretion to the Competent Authority to increase or decrease the amount of security deposit depending on facts of the case. In the instant case the Competent Authority has fixed the security amount as 2.5 times the duty amount. From the defense presented by the appellant, it has not been denied that the goods seized were imported goods. The grounds of appeal do not contest the quantification of duty on merits as there is no specific arguments in the appeal memorandum or in the written submissions filed by the appellant except some general statements. No notice issued for seizure of goods - HELD THAT:- The seizure was made on 13.10.2020 and the said seizure order is not subject matter of challenged in the present proceedings. The entire appeal of the appellant before the lower authorities as well as Tribunal is only for the relaxation in the terms of Provisional release, there has not been any challenge to seizure before lower authorities. Validity of quantum of security fixed by the lower authorities - HELD THAT:- In the instant case, the goods were cleared from the Customs area and were lying in the premises of the appellant. Part of the goods were further processed. Moreover, from the entire quantity detained by the Revenue, 75% of the same was found to be of Indian Origin and for the rest the Revenue is yet to issue the Show Cause Notice - the amount of security of 2.5 times the differential duty is excessive, the same is reduced to the amount equal to differential duty quantified in the order. The bond amount will continue to remain equal to the value of the goods. Appeal allowed in part.
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