{"id":243609,"date":"2021-02-09T14:15:00","date_gmt":"2021-02-09T08:45:00","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=243609"},"modified":"2021-04-09T12:41:33","modified_gmt":"2021-04-09T07:11:33","slug":"cestat-condition-of-bank-guarantee-found-exorbitant-tribunal-allows-appeal-reducing-amount-of-the-bank-guarantee","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2021\/02\/09\/cestat-condition-of-bank-guarantee-found-exorbitant-tribunal-allows-appeal-reducing-amount-of-the-bank-guarantee\/","title":{"rendered":"CESTAT | Condition of bank guarantee found exorbitant; Tribunal allows appeal reducing amount of the bank guarantee"},"content":{"rendered":"<p style=\"text-align: justify;\"><strong>Customs, Excise and Services Tax Appellate Tribunal (CESTAT):<\/strong> The Coram of Ramesh Nair (Judicial Member) and Raju (Technical Member) allowed an appeal which was filed against Order passed by the Commissioner of Customs whereby; the appellant\u2019s imported seized goods had been provisionally released subject to the execution of bond for full value with Bank Guarantee of Rs1, 38, 12,513. The appellant had challenged the said order on the ground that the condition of bank guarantee is exorbitant therefore, they seek a reduction in the amount of the bank guarantee.<\/p>\n<p style=\"text-align: justify;\">The Counsel for the appellant, Mr Hardik Modh submitted that the subject goods were seized alongwith other consignment under common seizure.<\/p>\n<p style=\"text-align: justify;\">The Tribunal relied on the Order dated 16-07-2020 in the case of Wittenia Multi trading (P) Ltd. which had the same facts and it was held that,<\/p>\n<ol style=\"text-align: justify;\" start=\"4\">\n<li><em> We have heard both sides and perused the record. In the overall facts of the case, we find that there is prima-facie case of malafide on the part of the appellant to claim exemption fraudulently. However, this is not our conclusion on the merits of the case as the detailed investigation is pending. We also find that the appellant requested for provisional release for re-export of the goods. In that case, a lenient view can be taken. Needless to say that the appellant shall clear the goods on payment of duty as assessed by the Customs. In these circumstances, we are of the view that the appellant deserve for some leniency as regards terms of provisional release of the seized goods. Accordingly, we hold that goods may be provisionally released on furnishing bond of total value with bank guarantee of the amount of 50% of the total duty. <\/em><\/li>\n<\/ol>\n<p style=\"text-align: justify;\"><em>Thus, the appeal is partly allowed in the above terms. Early hearing application also disposed of.\u201d<\/em><\/p>\n<p style=\"text-align: justify;\">The Tribunal allowed the appeal coming to the conclusion the seized goods shall be released on furnishing bond of total value of the goods with a bank guarantee of the amount of 50% of the total duty.[MM9 International v. C.C.- Mundra, <a href=\"http:\/\/www.scconline.com\/DocumentLink\/83it8Xyx\"><b>2021 SCC OnLine CESTAT 82<\/b><\/a>, decided on 04-02-2021]<\/p>\n<hr \/>\n<p><span style=\"color: #008000;\">Suchita Shukla, Editorial Assistant has put this story together.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Customs, Excise and Services Tax Appellate Tribunal (CESTAT): The Coram of Ramesh Nair (Judicial Member) and Raju (Technical Member) allowed an appeal <\/p>\n","protected":false},"author":67011,"featured_media":201689,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3,11],"tags":[3981,44394,29785],"class_list":["post-243609","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-casebriefs","category-tribunals_commissions_regulatorybodies","tag-bank-guarantee","tag-bond","tag-law"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.4 (Yoast SEO v27.4) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>CESTAT | Condition of bank guarantee found exorbitant; 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