The Chennai bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) held that the provisional release of seized goods can be allowed after taking a suitable bond and bank guarantee even if the investigation was still pending.
Ocean Sky Impex Private Limited, the appellant assessee was engaged in the import of “Polyester Coated Fabric (Polymeric Compound)” from a China-based company vide various commercial invoices.
The assessee appealed against the order passed by the Commissioner (Appeals) for rejecting the request for provisional release on the grounds that the investigation was at a crucial stage and under process and therefore any decision on re-export of the goods at that stage would jeopardize the investigation.
Prem Ranjan Kumar, the counsel for the assessee contended that the investigation having been completed with the issuance of Show Cause Notice, the seized goods may not be required for investigation.
N. Satyanarayanan, the counsel for the department relied on the decisions made by the lower authorities and contended that the provisional release of the goods was not legally sustainable and the rejection was as per the law and liable to be sustained.
The Bench did not find any justifiable case made out by the authorities for not permitting the bona fide request for the re-export of the seized goods and the pleading of the assessee as to the acceptance by the foreign supplier on the wrong shipment as well as taking back the goods in question clearly shows the bona fides of the assessee.
The two-member bench comprising P Dinesha (Judicial) and Ajit Kumar (Technical) directed the adjudicating authority to allow the provisional release of seized goods.
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