J.S. DESIGNER LTD Vs. COMMISSIONER OF CUSTOMS

JUDGEMENT

(1.) The petitioner seeks directions against the respondent (hereinafter called as Customs Authority) for permitting the provisional release and export of its goods pursuant to the order of Central Excise & Service Tax Appellate Tribunal (CESTAT) dated 08.12.2011.

(2.) The petitioner is an export house functioning for the last 11 years. They had filed three shipping bills at ICD, Patparganj, Delhi for export of fabrics valued at about Rs. 9.25 crores. The Revenue started investigation doubting the correctness of the value declared. Later, however, the three consignments were permitted to be exported on execution of the bond with bank guarantee of Rs.2 crores which was furnished on 17.06.2011. Another shipping bill was filed by the petitioner on 15.06.2011 which too was detained for investigation. On 11.07.2011, the goods were permitted to be released provisionally on execution of bond for the value equal to 100% of the declared value with bank guarantee for 25% of the bond amount. The petitioner requested for waiver of the condition of bank guarantee and relied upon a letter dated 14.06.2011 issued by the Deputy Commissioner Export (SIIB), ICD-Tuglakabad, that letter had stated that wherever goods that were neither seized nor confiscated should be provisionally cleared, but on the condition to benefit the exporter, would not be released till finalization of the investigation. The petitioner made a further representation on 19.08.2011 requesting for wavier of the condition for bank guarantee in respect of shipment under bill dated 15.06.2011 and further requested release of bank guarantee of Rs. 2 crores furnished earlier. It was stated that bank realization certificate towards export proceeds in respect of the said bills were received on 06.07.2011.

(3.) The petitioner's goods were not released and there were complete inaction by the Customs Authority. This impelled it to approach the Court in a previous writ petition being WP(C) No.1856/2011 which was disposed of on 16.08.2011, directing the authorities to decide the petitioner's representation within two weeks and assign reasons by a speaking order. By an order dated 08.09.2011 the Commissioner rejected the petitioner's request for release of bank guarantee (of Rs. 2 crores) covering the three earlier exports under bills dated 19.05.2011, 20.05.2011 and 28.05.2011. The Commissioner also rejected the petitioner's request for waiver of the condition for furnishing bank guarantee of 25% of the bond amount in respect of the value of the goods covered by the subsequent shipping bills dated 15.06.2011.