CESTAT Reduces Bank Guarantee to Rs.18 lakhs for Provisional Release of Imported Dry Dates on ground of Proportionate Amount of Value of Goods [Read Order]

The Ahmedabad bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) reduced the bank guarantee or cash security to Rs.18 lakhs for provisional release of imported dry dates on the ground of proportionate amount of value of goods. 

K.L. International, the appellant assessee appealed against the order passed by the Chief Commissioner for rejecting the request for reconsidering the amount of bank guarantee/ cash deposit ordered to be furnished. 

Uday M Joshi, the counsel for the assessee contended that the bank guarantee directed by Chief Commissioner for Rs. One Crore was incorrect and illegal on the face of the order and submitted that the amount of Rs. One Crore of cash deposit or bank guarantee should be reduced to bring in consonance. 

Vijay G Iyengar, the counsel for the department relied on the decisions made by the lower authorities and contended that the amount directed for bank guarantee or cash security on the imported goods was as per the law and liable to be sustained. 

The Bench observed that in the case of the Tribunal order, the value of the goods was 4.08 Crores against which the bank guarantee of Rs. One Crore was fixed by this Tribunal, therefore, following the same ratio, in the present case, against the value of goods which was Rs. 72,22,361/-, a proportionate amount of bank guarantee should be fixed at Rs. 18 Lakh. 

Also held that the goods shall be provisionally released on execution of bond for a total value of goods and on furnishing a bank guarantee/ cash security of Rs. 18 Lakh (Rupees Eighteen Lakhs only). 

The two-member bench comprising Ramesh Nair (Judicial) and C.L Mahar (Technical) reduced the bank guarantee amount while allowing the appeal filed by the assessee. 

To Read the full text of the Order CLICK HERE

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