Customs Dept. Directed to Release Bank Guarantee Withheld in Contravention of Earlier Order by the High Division Bench

Centax Editorial Board

February 20, 2025February 20, 2025

• 2 min. read

Case Details: Om Gems and Jewellery Versus Deputy Commissioner of Customs (Import) (2025) 27 Centax 97 (Del.)

Judiciary and Counsel Details

Prathiba M. Singh & Dharmesh Sharma, JJ.
S/Shri Kishore Kunal, Ms Runjhun Pare & Jayesh Sitlani, Advs., for the Petitioner.
Shri Satish Aggarwala, Sr. Standing Counsel, for the Respondent.

Facts of the Case

The petitioner, an importer of gold jewellery from Indonesia, claimed an exemption under a customs notification granting a NIL rate of Basic Customs Duty (BCD). Upon importation, the authorities required the petitioner to furnish a 100% Bank Guarantee for differential BCD and pay Countervailing Duty (CVD). The petitioner complied, and the goods were released under provisional assessment. Despite multiple requests, the Customs Department did not finalize the assessment, prompting the petitioner to file a writ petition before the Delhi High Court. On 14th December 2023, the Court directed the Customs Department to release the Bank Guarantee and any retained funds, subject to the final assessment order. However, the Customs Department failed to comply. Subsequently, the final assessment order was passed, leading to further legal proceedings before the Delhi High Court.

High Court Held

The Hon’ble Delhi High Court held that the Division Bench’s judgment must be complied with, and the Customs Department could not withhold the release of the Bank Guarantee by adjusting it against the final assessment. The final assessment order was deemed appealable, and the petitioner was permitted to file an appeal against it within 30 days along with the requisite pre-deposit. The Court directed the Customs Department to release the Bank Guarantee with applicable interest forthwith, ensuring full compliance with the prior judicial ruling.