Security/bank guarantee is necessary for the provisional release of the confiscated goods before adjudication

Last updated: 20 January 2023

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Quick Summary

The CESTAT has ruled that a bank guarantee is necessary for the provisional release of confiscated goods, even if the differential duty has been paid. While the appellant argued for a waiver, the tribunal maintained that some security is required to cover potential fines or duties. However, the bank guarantee amount was reduced from 10% to 5% of the goods' value in this specific case, acknowledging the deposit of differential duty.

Court :
CESTAT, New Delhi

Brief :
The CESTAT, New Delhi in the matter of M/s Classic Interiors v. Commissioner of Customs, New Delhi [Customs Appeal No. 51454 of 2022 dated January 12, 2023] modified the order of the Commissioner of Customs(Appeals), to the extent that the amount of bank guarantee for provisional release of the confiscated goods to be reduced from 10% to 5% of the total value of the goods, on the grounds that differential duty as demanded has already been deposited by the assessee. Held that, some security is necessary to cover it if the goods are to be released provisionally before adjudication.

Citation :
Customs Appeal No. 51454 of 2022 dated January 12, 2023

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