Hon'ble Prakash Krishna,J.
Heard the learned counsel for the petitioner and Sri Amit Mahajan, learned counsel for respondents no. 1 and 2 and Sri Sanjiv Singh, Advocate appeared for the respondent no. 3.
The petitioner's case in writ petition is that three bank guarantees were submitted by the petitioner at the time of provisional release of the goods, under Section 110A of the Customs Act. It is submitted that the Tribunal has passed an order on 22.03.2012 by which redemption fine has been restricted to 10% of the market value of the goods only and penalty under Section 114(i) of the Customs Act has been confined to Rs.13,80,000/- He submits that the bank guarantee of Rs.47,36,189/- has already been submitted which is valid upto 25th May, 2012. It is submitted that by letter dated 11th April, 2012, petitioner has been asked to renew the bank guarantee for Rs.81,92,979/- which is valid upto 09.04.2012. Submission is that liability having been substantially reduced by the order of the Tribunal, there is no occasion for asking the petitioner to renew the aforesaid bank guarantee whereas the guarantee already given, is sufficient to cover the liability of the petitioner. It is further submitted that the petitioner intends to file further appeal against the order of the Tribunal.
In view of the facts and submissions made, we are of the view that respondent no. 1 may not invoke the bank guarantee in pursuance of the order dated 22.03.2012. However, the other bank guarantee shall be maintained to cover the liability of the petitioner, which shall be subject to further order to be passed.
Respondents may file counter affidavit within three weeks.
List thereafter.
(Prakash Krishna,J) (Ashok Bhushan,J) Order Date :- 9.5.2012 MK/