2026-VIL-1744-CESTAT-KOL-CU
  1. Home
  2. 2026-VIL-1744-CESTAT-KOL-CU

CUSTOMS CESTAT Cases

Customs - Provisional release under Section 110A of Customs Act - Quantum of Bond and Bank Guarantee - Appellant imported areca nut from Bangladesh and claimed duty exemption under Notification No.99/2011-CUS on the strength of a SAFTA Certificate of Origin - On a DRI alert and suspicion that the goods were of Indonesia/Thailand origin routed through Bangladesh, the goods were seized - Principal Commissioner permitted provisional release subject to a Bond and a Bank Guarantee, the latter fixed by adding duty, equivalent penalty and fine - Whether the amounts of Bond and Bank Guarantee imposed are justified - HELD - Since the Tariff value provisions come into play, the assessable value of the consignment is determined on that basis, and the Bond directed for that value is in order. Once a Bond is executed, the importer is bound to honour the amount specified therein. Penalty and fine would become recoverable only after investigations prove the Revenue's case after litigation at various stages - It is premature to quantify the likely penalty and fine before any steps have been taken for verifying the authenticity of the Certificate of Origin. A consignment imported earlier from the same exporter on the basis of the Certificate of Origin was allowed to be cleared with SAFTA benefit after final assessment. Ends of justice would be met with adequate revenue protection if the amount of the Bond is increased to the figure fixed earlier as Bank Guarantee and the Bank Guarantee is substantially reduced - The Bond is enhanced and the Bank Guarantee is reduced, and upon fulfilment of these conditions the Appellant is eligible for provisional release of the consignment - Customs - Waiver of demurrage and detention charges on goods seized and provisionally released - Regulation 6(1) of the Handling of Cargo in Customs Areas Regulations, 2009 - Appellant imported goods which were seized on suspicion regarding the country of origin and permitted to be released provisionally, and sought waiver of demurrage and detention charges - Whether demurrage and other charges are to be waived in respect of the detained consignment - HELD - Regulation 6(1) of the Handling of Cargo in Customs Areas Regulations, 2009 provides that, subject to any other law for the time being in force, the Customs Cargo Service Provider shall not charge any rent or demurrage on the goods seized or detained or confiscated by the proper officer. Since the confiscated goods are being released on provisional basis, the Revenue officials are directed to issue a complete waiver order towards demurrage and other charges in respect of the detained consignment. The Appellant may also be allowed to carry out the fumigation exercise at its own cost, under the supervision of Customs Officials, so as to avoid further deterioration of the consignment - The Revenue is directed to waive demurrage and other charges.
Download File

Quick Search

/

Advance Search

GST Resources

/

Gst Rate Finder

Tax Vista

Your Weekly Tax Recap

By Dr. G. Gokul Kishore

Weekly Summary

VIL Video

GST & Customs updates: Sep'26
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

Security-Code
New Code?

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.

Security-Code
New Code?

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?