The Ahmedabad Bench of the Customs, Excise and Service Tax Appellate Tribunal ( CESTAT ), reduced security for provisional release of dry dates considering perishability.
The intelligence was received by the DRI, Jamnagar to the effect that M/s K.L. International, the appellant has imported dry dates having declared assessable value of Rupees four crores by allegedly mis-declaring the country of origin. The imported goods (Dry Dates) were declared to be an UAE origin whereas as per the intelligence, the said imported goods were of Pakistani Origin. As per Notification No. 05/2019- Cus dated 16.02.2019, Customs duty at 200% was to be imposed on Pakistani Origin dry dates and was to be classified under CTH 9806000.
The Principal Commissioner, Customs has acceded request for provisional release of the goods upon execution of Bond covering the full value of seized goods and Bank Guarantee or cash deposit of an amount of Rs. 12 crores covering the differential duty, fine, penalty. The present appeal has been filed seeking to set aside of the order to the extent it requires to the Appellant to deposit of Rs. 12 Crores of cash or Bank Guarantee.
Rahul D. Patel, Counsel appearing on behalf of Appellant submitted that the goods are not prohibited for import and the margin of profit has considerably reduced and fine in lieu thereof even if they finally held to be Pakistan Origin will have to be cleared on excessive duty rate. The high amount of Rs 12 Crores as Bank Guarantee will increase the cost of the importer. These factors appear to have not been considered by thePrincipal Commissioner who has imposed heavy terms of deposit of Bank Guarantee of Rs. 12 Crore.
P. K Rameshwaram, Additional Commissioner (Authorized Representative) appearing on behalf of the revenue submitted that the orderis correct and proper in law considering the fact that the goods were imported from Pakistan as against the UAE.
A Bench consisting of Ramesh Nair, Judicial Member and Raju, Technical Member held that “The goods namely dry dates being edible is obviously in the perishable nature. It has been considered consistently by various forums that in case of perishable goods provisional release of the goods should be allowed expeditiously. On this ground also the appellant deserves for leniency as regard the condition for provisional release of the goods.”
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