Hummer car story - Revenue returns bank guarantee of Rs.20 lakhs
THE issue involved was import of a "Hummer Car". The Bench had inter alia held that the appellant was entitled for the benefit of notification 21/2002-Cus.[ ]
Although the appeals were allowed with consequential relief, no such consequential relief came their way. So, the applicant had filed a miscellaneous application seeking release of the bank guarantees of Rs.20 lakhs executed by them while seeking provisional release of the "Hummer".
The Bench noted that the final order was passed on 30.10.2012 in the Open court and as per the Board's Circular no. 802/35/2004-CX dated 8.12.2004, when an issue is decided by the Tribunal in favour of the assessee, Revenue is bound to release the Bank guarantee within 90 days of the said order.
In his reply [see DDT 2078 ] the Commissioner of Customs(Import), NhavaSheva Bank submitted that the Guarantee is the only security towards realizable and legal revenue and without any collateral security the interest of the Revenue would be in jeopardy.
It was also mentioned - "This Commissionerate would be highly obliged if the Hon'ble Tribunal grants us a six months time period for the return of Bank Guarantee. However, if Hon'ble Tribunal gives a contrary decision, we would have the fullest respect for the same and shall abide by the same, in letter and spirit."
The Bench was not impressed and observed that in the interest of justice ten day's time is given to comply with the order and the matter is to come up on the 8th April, 2013. []
DDT had promised to keep you posted.
Following is the order of the Bench passed on 08/04/2013 -
"Revenue was directed to cancel and release the bank guarantee executed by ShriInderpal Singh Gujral vide order dated 26/03/2013 []
2. When the case was called for compliance today, a letter has been submitted on behalf of the Revenue, which is addressed to ShriInderpal Singh Gujral dated 02/04/2013, wherein it is stated that the bank guarantee has been cancelled and returned.
3. In view of the above, the compliance is noted."
(See )