Amar Singh And Sons Tree Nuts LLP Vs Superintendent of Customs (Delhi High Court)
The present writ petition praying for stay of encashment of the subject bank guarantee in terms of the Order-in-Original dated 06.12.2024 passed by Principal Commissioner of Customs. The matter arises out of three “Advance Authorisation Licenses” which allow to import “Walnut Inshell of Chandler Variety” at nil rate of duty with the condition that the Petitioner would fulfil the export obligations.
A show cause notice (SCN) was issued by Directorate of Revenue Intelligence (DRAI) whereby petitioner was asked to explain diversion of the imported goods to the local market and exported Indian walnut kernels under the garb of walnut kernels of chandler variety. The SCN was adjudicated by impugned order-in-original.
It was argued on behalf to petitioner that it was preferring the appeal against impugned Order-in-Original. There is an apprehension that department could encash the subject bank guarantee of Rs. 3,06,77,000/- which is lying with it even prior to the filing of the appeal and the listing of the same. Reliance is placed on Circular No. 984/08/2014-CX dated 16.09.2024. which provided for the recovery of the amounts during the Pendency of Appeal. In terms of the clause 4 of the Circular, it was submitted that if the stipulated amount of pre-deposit is made during the pendency of the appeal or till the appeal is filed, no coercive steps can be taken for recovery of any amounts by the Department. On the other hand it was submitted by department that circular would be applicable in this case, as the Department has already attached a sum of Rs. 3,53,61,437/- mentioned in the Order-in-Original.
