UNION OF INDIA Vs. GREEN ALLOYS P LTD

JUDGEMENT

(1.) Leave granted.

(2.) Challenge in this appeal is to the order passed by a Division Bench of the Punjab and Haryana High Court directing release of the goods seized from the respondent on furnishing undertaking to pay the duty or other dues which may be found due without furnishing any cash security or bank guarantee for the value of the goods. Certain other directions were given which we are not primarily concerned with. By the Writ Petition (CWP No. 17287 of 2008) the respondent had sought for a direction for release of raw material seized by the Anti Evasion Branch of the Central Excise, Faridabad on 15.9.2008 and also to quash letter of seizure on 24.9.2008 alongwith Panchnama.

(3.) Stand of the present respondents was that under the Cenvat Credit Rules, 2004, only the finished goods are excisable and there could be no evasion of duty unless the goods are manufactured and cleared. Condition of executing Bond in form B-11 or giving of cash security for releasing the goods was not justified. Bond B-11 was applicable for release of finished goods only.