Order Date – 12 January 2023 

Parties: M/s Classic Interiors Vs Commissioner of Customs, New Delhi

Facts – 

• The Petitioner, M/s Classic Interiors, imported some goods, and it was found to DRI that the goods were mis-declared in terms of value and also in terms of percentage of polyvinyl chloride. The goods were seized under section 110 of the Customs Act, 19627.
• There after the Additional Commissioner passed the provisional release of goods on submission of bond equal to the value of the good and Bank Guarantee to cover the applicable Govt. dues.

Issue – 

• Whether the requirement of bank guarantee for provisional release can be waived?

Order – 

• The Tribunal found that there was allegation of mis-declaration of the value of the goods which has been admitted to by the appellant in letters and statements. The SCN demanded differential duty which the appellant has already deposited.
• The Tribunal held that if the goods are held liable for confiscation, they may be released on payment of redemption fine. The present case of provisional release of goods needs to be seen in this context. 
• It was held that if the goods are confiscated and allowed redemption on payment of fine such fine has to be recovered from the appellant and some security is necessary to cover it if the goods are to be released provisionally before adjudication itself. Hence, it modifies the impugned order reducing the amount of bank guarantee to 5% of the value of the goods.