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2015 (12) TMI 1433 - GUJARAT HIGH COURT

2015 (12) TMI 1433 - GUJARAT HIGH COURT - TMI - Request for permission to sell an aircraft - Concessional rate of duty - Customs authorities formed a belief that the valuation declared by the petitioner at the time of import was not accurate and further that the petitioner had breached the condition on which the concessional rate of duty was applied - Held that:- Principal duty liability as indicated in the show cause notice is ₹ 8.78 crores. This principal amount of duty may further invit .....

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ould be granted. - petitioner has already provided the bank guarantee of ₹ 10 crores to the department in addition to bond of ₹ 30 crores. The first condition would therefore be that these guarantees would be kept alive till the disposal of the show cause proceedings. - Petition disposed of. - Special Civil Application No. 11783 of 2015 - Dated:- 2-12-2015 - Akil Kureshi And Mohinder Pal, JJ. For the Appellant : Mr S I Nanavati, Sr Adv with Ms Anuja S Nanavati, Adv For the Respondent .....

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e of import was not accurate and further that the petitioner had breached the condition on which the concessional rate of duty was applied. Authority, therefore, issued a show cause notice dated 22nd July, 2010 calling upon the petitioner to show cause why the aircraft should not be confiscated, valuation of ₹ 31.37 crores (rounded off), showed by the petitioner should not be substituted by ₹ 37.99 Crores (rounded off) and the Customs duty of ₹ 8.78 Crores (rounded off) with in .....

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s before the Supreme Court. As a result, there is no worthwhile progress in such proceeding for over 5 years. In the meantime, the petitioner is suffering irreparable loss since the market value of the aircraft would decrease over a period of time. The petitioner also has to incur heavy demurrage charges. The petitioner had, therefore, requested for permission to sell the aircraft on some reasonable conditions. 5. On 6.11.2015, Division Bench of this Court passed detailed order recording the fac .....

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y of interim relief, the second respondent is directed to reconsider the application made by the petitioners for sale of provisionally released aircraft ignoring the fact that the show-cause notice has been transferred to the call book or that the aircraft in question would not be available for confiscation if the show-cause notice culminates into an order of confiscation being passed. The respondent No.2 shall decide the application on or before 24th November, 2015 and the order passed thereon .....

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arantee shall be equal to sale value of the subject aircraft or ₹ 30 Crores, whichever is greater. 2. On completion of the sale, if the sale amount is in excess of amount at (1) above, the excess amount shall be further secured by another BG which shall be furnished within 2 weeks of completing the sale / receipt of sale consideration. 3. All BG furnished shall be kept alive till the completion of the adjudication proceedings". 7. Learned advocate for the petitioner in response to suc .....

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ingent, the same may, therefore, be suitably modified. He submitted that insisting on giving bank guarantee for huge sum of ₹ 30 Crores would cause inconvenience to the petitioner. He suggested that the said amount be reduced and further that part of the same be covered through Corporate Guarantee instead of Bank Guarantee which would enable the petitioner to avoid the hefty recurring bank charges. He submitted that it is not foreseeable when the show cause notice would be finally adjudica .....

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ty as indicated in the show cause notice is ₹ 8.78 crores. This principal amount of duty may further invite interest and penalties. However, it is not necessary that in every case maximum penalty would be levied. There is also a proposal for confiscation, of course, with the statutory provision of permitting redemption fine in lieu of confiscation. In totality of the facts of the case, we would adopt sum of ₹ 20 crores in all which would safeguard the interest of the revenue. In othe .....

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