Goods even if remote possibility of being found prohibited or restricted at time of adjudication, could not be subjected to non release u/s 110A

Tasha Gold Pvt Ltd Vs Principal Commissioner of Customs (CESTAT Delhi)

Conclusion: Goods even if there was any remote possibility of being found prohibited or restricted at the time of adjudication was there, could not be subjected to non release in terms of Section 110A, thus, the provisional release of 26 Gold Dore weighing 5 kg plus more, subject to certain conditions.

Held: Assessee-company had filed the present appeal against the letter/order addressed by the Respondent, wherein the Principal Commissioner of Customs rejected the request for provisional release of the impugned goods imported under B/E No. 3625730 dated 06.12.2022 under Section 110A of the Customs Act, 1962. In the impugned letter/order, the Respondent had mentioned that the provisional release of the impugned goods had been rejected, because – the imported goods fell under category of ‘prohibited goods’ of the Act, since the gold content of the imported goods was “found to be above 95% and the license issued by DGFT to the Appellant was for import of Gold Dore Bars (having gold content not exceeding 95%); CBIC Circular no. 35/2017 Customs dated 16.08.2017 in the guidelines for provisional release of seized goods pending adjudication under Section 110 A of the Act had prescribed that provisional release of the goods prohibited under the Customs Act, 1962 or any other Act for the time being in force should not be allowed. It was held that goods even if there was any remote possibility of being found prohibited or restricted at the time of adjudication was there, could not be subjected to non release in terms of Section 110A. Thus, the provisional release of 26 Gold Dore weighing 5 kg plus more, subject to the following conditions:- That the duty paid at the time of seeking release of goods of 15.20 crores approximately, even if voluntarily paid or paid under protest should not be sought for refund by assessee and shall remain available to the department till culmination of adjudication; One Gold Dore Bar weighing 4.24 kg would remain available with the department as security and should not be released including release for re-export if sought by the party till adjudication was over. Apart from above security the party should furnish a bond binding itself to pay equivalent of full value of consignment plus 20% in lieu of penalty thereon, to the department; That the provisional release by the department, should be done within two weeks of compliance and documentation of formalities as per para (1) and (2) above, by assessee.

FULL TEXT OF THE CESTAT DELHI ORDER

The Appellant has filed the present appeal against the letter/order dated the 03.08.2023 addressed by the Respondent, wherein the Principal Commissioner of Customs rejected the request for provisional release of the impugned goods imported under B/E No. 3625730 dated 06.12.2022 under Section 110A of the Customs Act, 1962 (“the Act”)

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