9911796707
TMI Blog2015 (12) TMI 1435X X X X Extracts X X X X X X X X Extracts X X X X ..... have addressed the court at length, the matter was heard finally at the admission stage. 2. The petitioner had applied for, and was granted a licence for a private bonded warehouse under section 58 of the Customs Act, 1962 (hereinafter referred to as "the Act"). The petitioner, accordingly, had executed a warehousing bond in accordance with section 59 of the Act. The warehousing bond was also supported by two bank guarantees of Rs. 5,00,000/- each, one for the private bonded warehouse licence and the other as a transit bond security. 3. The private bonded warehouse of the petitioner was at Godown No.12, Survey No.288, N.H. No.8, Mithi Rohar, Gandhidham. The petitioner had surrendered the private bonded warehouse licence which was obtaine ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot released the bank guarantees, the petitioner has filed the present petition seeking a direction to the respondents No.2 and 3 to forthwith return the original bank guarantee papers of Bank Guarantee No.1996/22 dated 12th December, 1996 and Bank Guarantee No.2003/13 dated 29th December, 2003. 4. Mr. Paresh Dave, learned counsel for the petitioner submitted that in respect of the orders which have been passed against it, the petitioner has preferred appeals before the Appellate Tribunal which has granted stay in favour of the petitioner and such orders are in operation. In these circumstances, the purpose for which the bank guarantees were given no longer survives. It was submitted that the bank guarantees were not linked with the cases p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the petition deserves to be allowed by granting the reliefs as prayed for by the petitioner. 5. On the other hand, Mr. Hriday Buch, learned standing counsel for the respondents submitted that three cases relating to warehousing came to be instituted against the petitioner wherein the demand has been confirmed by the concerned authority. It was submitted that the bank guarantees were with regard to any liability that may accrue during the period when the petitioners were engaged in the activities of warehousing. Reference was made to the communication dated 27th November, 2014 of the Assistant Commissioner (Bond), Kandla addressed to the petitioner to point out that by an Order-in-Original passed by the Joint Commissioner of Customs House, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... February, 2012 and another Order-in-Original is dated 28th February, 2013. It was submitted that if the bank guarantees had been given in connection with such liability or were permitted to be encashed towards such liability, the respondents would have encashed the same. It was further submitted that the Tribunal has granted stay subject to the conditions as stated in the stay orders which have been duly complied with by the petitioner, however, the stay has not been granted on condition of furnishing bank guarantee. Under the circumstances, the respondents have no authority to retain the bank guarantees even on equitable grounds. Reference was made to the provisions of section 73 of the Customs Act, 1962 (hereinafter referred to as "the A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the case reveals that in connection with the warehousing activities, three cases came to be instituted against the petitioner which culminated into orders against the petitioner whereby the demand and/or the penalty came to be confirmed. The petitioner challenged the orders either before the first appellate authority or the Tribunal, as the case may be, and against the order passed by the first appellate authority, before the Tribunal. In all the three cases, the Tribunal has granted stay subject to pre-deposit of the amount stipulated in such orders, which the petitioner has already deposited. Therefore, in relation to all the three orders which have been passed against the petitioner, proceedings are pending before the Tribunal and such o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sing licence stands surrendered, the warehousing bonds stand cancelled, the demands raised by the orders passed against the petitioner in the three proceedings stand stayed by the Tribunal. Moreover, the petitioner has also given an undertaking to the respondents that it will discharge all liabilities that may be finalised or arise against the petitioner. In these circumstances, in the opinion of this court, the respondents are not justified in withholding the bank guarantees. 9. For the foregoing reasons, the petition succeeds and is accordingly allowed. The respondents No.2 and 3 are hereby directed to forthwith return to the petitioner the original bank guarantee papers of Bank Guarantee No.1996/22 dated 12th December, 1996 and Bank Gua ..... X X X X Extracts X X X X X X X X Extracts X X X X
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