MANSA CIGARETTES PVT LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) THE Applicants/Original Petitioners have filed this application seeking clarification of the order passed by this Court on 13 -1 -2010 and also for the direction to the Respondent Authorities that the goods are to be provisionally assessed upon furnishing by the concerned Applicants a bond for appropriate amount and a security for 25% of the bond amount and to clear the goods accordingly.

(2.) THIS Court has issued Rule on 1 -2 -2010. An Affidavit -in -Reply is filed on behalf of the Respondent.

(3.) HEARD Mr. Paresh M. Dave, the learned Advocate appearing for the Applicants and Mr. Y.N. Ravani, the learned Standing Counsel appearing for the Excise Department. The order passed by this Court on 13 -1 -2010 is very clear whereby the Court has directed to provisionally release the goods as well as to make the provisional assessment, and accordingly, the Respondent Authorities have passed certain orders. The only grievance is with regard to the order passed by the Assistant Commissioner of Central Excise, Vadodara -I on 25 -1 -2010 whereby he has directed the Applicants to provide AB2 bond for Rs. 74,28,500/ -and bank guarantee of Rs. 74,28,500/ - in view of instruction of the Board contained in paragraph 2.2(b) and paragarph 4.1(ii) of Chapter -14 of the CBEC's Central Excise Manual. Demanding bank guarantee for Rs. 74,28,500/ - is contrary to the directions issued by this Court. The Court has made it very clear that the Applicants should give a bond along with security/bank guarantee as prescribed in paragraph IV (Provisional Assessment Chapter -3, CBEC Excise Manual of the Supplementary) instructions read with Rule 7 of Central Excise Rules, 2002 and CBEC Circular No. 686/2/2003 -CX dated 2 -1 -2003. Both these documents require the Applicants to furnish bank guarantee to the extent of 25% of the bond value only. Despite this, the Assistant Commissioner is demanding the bank guarantee of Rs. 74,28,500/ - which is 100% of the bond value.