APOLLO CRANES PVT LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) Rule, by consent returnable forthwith. With the consent of Counsel and at their request the Petition is taken up for hearing and final disposal.

(2.) The Petitioners question in these proceedings under Article 226 of the Constitution, the legality of orders passed by the Commissioner of Customs (Import) on 15 February 2011 and 7 April 2011 granting provisional release of goods seized under Section 110 of the Customs Act 1962 subject to the following conditions:

(3.) The Petitioners imported nine cranes between 17 November 2005 and 6 April 2010 in respect of which bills of entry were lodged and which were assessed. On 10 November 2010 the cranes were seized by the Customs authorities. On 15 February 2011 an order for the provisional release of the goods was passed under Section 110A permitting clearance subject to (i) payment of - differential duty together with interest; (ii) the furnishing of a bank guarantee representing 20% of the ascertained CIF value; (iii) the furnishing of a bond; and (iv) an undertaking to produce the cranes for inspection and not to dispose of the cranes without prior intimation. On 21 March 2011 the Petitioners addressed letters to the Commissioner of Customs stating that two cranes had already been released on the payment of differential duty. However, the Petitioners stated that they were ready to secure the revenue by furnishing bank guarantees of a nationalized bank and hence, the direction for making a deposit be modified accordingly. The Petitioners also stated that the direction to furnish a bank guarantee representing 20% of the enhanced value may be reduced to an amount representing 10% of the enhanced CIF value. By a letter dated 7 April 2011 the Deputy Commissioner of Customs has granted the request made by the Petitioners for clearance of the seized cranes one at a time, as sought.