AKANKSHA SYNTEX PVT. LTD. Vs. UNION OF INDIA

JUDGEMENT

(1.) Rule; with the consent of Counsel for the parties returnable forthwith. With the consent of Counsel and at their request the petitions are taken up for hearing and final disposal. The petitioners have challenged an order passed by the Commissioner of Customs on 12, December, 2011 granting provisional release under Section 110A of the Customs Act, 1962 subject to the following conditions:

(2.) The petitioner imported four consignments allegedly of PU Coated Fabric under four Bills of Entry through the port of CFS Mulund. The DRI at New Delhi had initiated investigation against the petitioners for several imports at, inter alia, Inland Container Depots in Delhi and NCR on the basis of information that the value declared by the importer was incorrect. Orders of seizure were issued on 5 May, 2011 and 18 July, 2011. The Commissioner of Customs subsequently passed an order extending the period of seizure in terms of the proviso to Section 110(2) for six months by an order dated 2 August, 2011. An order for provisional release was passed on 12 December, 2011. The petitioners had moved the CESTAT. The Tribunal by its judgment dated 9 October, 2012 2013 281 ELT 186 came to the conclusion that an appeal is not maintainable against an order passed under Section 110A for provisional release. Ultimately, these proceedings came to be instituted for challenging the order of the Assistant Commissioner of Customs directing provisional release.

(3.) Two submissions have been urged on behalf of the petitioners. The first submission is that where a notice to show cause is not issued within one year of the detention of the goods, Section 110(2) mandates that the goods have to be released unconditionally. The second submission is that on a differential duty of Rs. 4 lakhs, the Commissioner has directed the petitioners to furnish a Bank Guarantee of Rs. 36 lakhs. An amount of Rs. 2 crores is already stated to be lying in deposit with the Department. Counsel relied upon the judgment of the Punjab and Haryana High Court dated 30 November, 2012 in the case of the petitioner whereby goods lying in the Inland Container Depots at Ballabgarh and at Ludhiana and Delhi were directed to be released, in view of the fact that the amount of Rs. 2 crore is lying with the Customs authorities which shall be adjusted against the liability that may be determined upon adjudication.