OM Gems And Jewellery Vs Deputy Commissioner of Customs (Import) Air Cargo Complex NSCBI Airport & Ors. (Delhi High Court)
In the case of Om Gems and Jewellery Vs Deputy Commissioner of Customs (Import), the Delhi High Court addressed a dispute over the release of a bank guarantee of ₹22,07,264, which was submitted by the petitioner, Om Gems & Jewellery, in connection with their import of gold jewellery from Indonesia. The petitioner had initially availed the benefit of a preferential duty exemption under notifications No. 46/2011-CU and 12/2012-CE. However, Customs later sought a bank guarantee for 100% of the differential Basic Customs Duty (BCD). This led to a prolonged legal battle.
This case marked the second round of litigation after a prior judgment in December 2023, which had directed Customs to release the bank guarantee with interest due to delays in finalizing the provisional assessment. The petitioner had paid Countervailing Duty (CVD) and submitted the bank guarantee as directed, but the final assessment was delayed, prompting the petitioner to file a writ petition seeking the release of the bank guarantee along with interest. The Court had ruled that the delay in finalizing the assessment was arbitrary, and directed the refund with interest at 6% per annum, starting from 17th March 2016.
