2026-VIL-1875-CESTAT-AHM-CU
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CUSTOMS CESTAT Cases

Customs - Provisional release under Section 110A of Customs Act, 1962 - Quantum of Bank Guarantee in addition to bond - Appellant imported walnuts with Afghanistan declared as country of origin and claimed exemption from Basic Customs Duty under Notification No. 99/2011-Cus., furnishing Certificates of Origin and other documents. DRI seized the goods on allegations relating to transit documents and verification of the premises. The Adjudicating Authority permitted provisional release on a bond for the full value and a Bank Guarantee covering the alleged differential duty, estimated redemption fine and penalties, which the FAA upheld without any final finding on origin, forgery or confiscation. The Appellant challenged only the Bank Guarantee, which was about 132 percent of the value of goods - Whether the requirement of Bank Guarantee in addition to a full value bond is onerous and liable to be reduced - HELD - Interest of Revenue and of the party whose perishable goods have been seized must be balanced pending adjudication, as goods held in custody for long are likely to decay, serving the purpose of neither party. The bond for the full value is appropriate, but the Bank Guarantee in addition to it is clearly onerous. The Appellant has produced Certificates of Origin and other documents required to claim the lower duty benefit, and it is inappropriate to pronounce on merits at this stage. The Department is free to establish its case in investigation and adjudication. The decisions cited show that Bank Guarantee has mostly ranged from nil to 20 percent. Where verification is pending and the Certificate of Origin is not yet proved to be not genuine, reducing the Bank Guarantee to 20 percent of duty while retaining a full value bond is more appropriate - The Bank Guarantee is reduced to 20 percent of the duty involved along with bond for the whole duty amount, and the appeal is allowed
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