2026-VIL-147-CESTAT-AHM-CU
  1. Home
  2. 2026-VIL-147-CESTAT-AHM-CU

CUSTOMS CESTAT Cases

Customs - Provisional Release of Goods – Appellant imported coriander seeds under duty exemption notification and allegedly diverted the imported goods into the domestic market without processing, violating the actual user condition - Department seized the goods and granted provisional release subject to the appellant furnishing a bond equal to the value of the goods and a bank guarantee - Whether the appellant violated the actual user condition by diverting the imported coriander seeds into the domestic market without processing – HELD - The appellant's contention that the imported coriander seeds were always processed in the factory and never sold in the domestic market as such. The Hon'ble Supreme Court and High Court have permitted the use of imported inputs under the Advance Authorization Scheme for manufacturing finished goods which are subsequently sold in the domestic market. Therefore, the Tribunal did not conclusively determine the issue of violation of actual user condition at this stage - For provisional release of goods, the bank guarantee should be limited to 30% of the differential duty amount, and not the full duty amount. The Tribunal modified the impugned order by directing the appellant to furnish a bank guarantee only to the extent of 30% of the duty amount, in line with the above judicial precedents. The condition requiring a bank guarantee solely based on the department's circular is not legally sustainable, as circulars are administrative instructions - The impugned order is modified to the extent of the bank guarantee condition, which is reduced to 30% of the duty amount – The appeal is partly allowed
Download File

Quick Search

/

Advance Search

GST Resources

/

Gst Rate Finder

Tax Vista

Your Weekly Tax Recap

By Kasi Viswanathan V

Weekly Summary

VIL Video

GST Jan '26 Burning issues:
By CA Vivek Jalan

Create Account

Security-Code
New Code?

Log In

New User ? Forgot Password ?

Forgot Password

Security-Code
New Code?
Please Note: This facility is only for Subscribing Members.

Email this page

Feedback this page

Schedule a Demo

Schedule a demo to know the features and advantages of VILGST portal. Get to know the tips to find the desired results in faster way.

Caselaw Request Form (CRF)

Didn’t find what you are searching for? No worries, please give us the following details and VIL will email you the desired Caselaws at the earliest:

Security-Code
New Code?