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2024 (3) TMI 368 - BOMBAY HIGH COURTChallenging the legality and validity of the seizure memo - imported Ethanol Absolute assessed as “Laboratory Chemical” under Customs Tariff Heading 98.02 (CTH 98.02) - mis-classification of the goods - HELD THAT:- Admittedly, there no dispute that the Petitioner has been importing Ethanol Absolute for the last few years and the classification under CTH 98.02 has been accepted by the Respondents, except in respect of Bill of Entry No. 7515045, which is the subject matter of the present Petition. The Petitioner has not been issued any Show Cause Notice till date. According to the Petitioner even the Investigation Report has not been provided to him. The Petitioner is a regular importer of Ethanol Absolute and not a fly by night operator. The Ethanol Absolute is in bottles of 500 ml and confirms to the marking requirement as per Chapter 98 of the Customs Tariff Act. In our view, the Respondents would not be justified in not permitting provisional release of Ethanol Absolute on the basis that some investigation is being conducted. The classification has to be seen at the time of import by the Petitioner and not the use to which it is put by the buyers of the goods from the Petitioner. There is no condition in the Customs Tariff under chapter 98, it imposes such an obligation on the Petitioner. In our view, in the light of these facts, the Respondents are not justified in refusing to release the Ethanol Absolute provisionally. The Ethanol Absolute under consideration is not prohibited goods but the only dispute between the Petitioner and the Respondents relates to classification, which, as observed above, has been permitted to be cleared since last many years under CTH 98.02 by the Respondents. As correctly submitted by the Petitioner, in similar circumstances, this Court, by its Judgement in M/s. K. Raj and Co. Vs. the Union of India [2023 (11) TMI 531 - BOMBAY HIGH COURT] and M/s. K. Raj and Co. Vs. the Union of India [2024 (2) TMI 34 - BOMBAY HIGH COURT] has ordered provisional release of the seized goods on execution of a bond. We see no reason as to why similar orders ought not to be passed in the present matter. Thus, we pass the following orders:- a) The Petitioner is entitled for provisional release of the Ethanol Absolute under Bill of Entry No. 7515045 on execution of a bond by the Petitioner to secure the differential duty and consequential amount, if any. b) The Respondents are directed to release the goods within a period of two weeks from the execution of such a bond by the Petitioner. c) All contentions of the parties with regard to classification are kept open to be considered in appropriate proceedings. d) The Writ Petition is disposed of.
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