{"id":2628,"date":"2025-02-20T20:35:53","date_gmt":"2025-02-20T15:05:53","guid":{"rendered":"https:\/\/centaxblogs.taxmann.com\/?p=2628"},"modified":"2025-02-20T20:39:07","modified_gmt":"2025-02-20T15:09:07","slug":"customs-dept-directed-to-release-bank-guarantee-withheld-in-contravention-of-earlier-order-by-the-high-division-bench-hc","status":"publish","type":"post","link":"https:\/\/www.centaxonline.com\/blog\/customs-dept-directed-to-release-bank-guarantee-withheld-in-contravention-of-earlier-order-by-the-high-division-bench-hc","title":{"rendered":"Customs Dept. Directed to Release Bank Guarantee Withheld in Contravention of Earlier Order by the High Division Bench | HC"},"content":{"rendered":"<pre><strong>Case Details:<\/strong> <a href=\"https:\/\/www.centaxonline.com\/latest-news-updates\/customs\/101010000000388837\/customs-dept-is-directed-to-release-bank-guarantee-which-was-withheld-in-contravention-of-earlier-order-by-the-high-division-bench-hc\">Om Gems and Jewellery Versus Deputy Commissioner of Customs (Import) (2025) 27 Centax 97 (Del.)<\/a><\/pre>\n<h2><em>Judiciary and Counsel Details<\/em><\/h2>\n<ul>\n<li><strong>Prathiba M. Singh<\/strong> &amp; <strong>Dharmesh Sharma<\/strong>, JJ.<\/li>\n<li><strong>S\/Shri Kishore Kunal, Ms Runjhun Pare<\/strong> &amp; <strong>Jayesh Sitlani<\/strong>, Advs., for the Petitioner.<\/li>\n<li><strong>Shri Satish Aggarwala<\/strong>, Sr. Standing Counsel, for the Respondent.<\/li>\n<\/ul>\n<h2><em>Facts of the Case<\/em><\/h2>\n<p>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.<\/p>\n<h2><em>High Court Held<\/em><\/h2>\n<p>The Hon\u2019ble Delhi High Court held that the Division Bench\u2019s 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.<\/p>\n<h2><em>List of Cases Cited<\/em><\/h2>\n<ul>\n<li><a href=\"https:\/\/www.centaxonline.com\/search?searchData=2024%20(387)%20E.L.T.%20575%20(Del.)&amp;itemType=AP\">Om Gems and Jewellery v. Principal Commissioner<\/a> \u2014 2024 (387) E.L.T. 575 (Del.) = (2023) 13 Centax 236 (Del.) \u2014 Relied on [Paras 2, 10, 14, 15]<\/li>\n<\/ul>\n<h2><em>List of Notifications Cited<\/em><\/h2>\n<ul>\n<li><a href=\"https:\/\/www.centaxonline.com\/search?searchData=Notification%20No.%2046%2F2011-Cus.&amp;itemType=AP\">Notification No. 46\/2011-Cus.<\/a>, dated 1-6-2011 [Para 3]<\/li>\n<li><a href=\"https:\/\/www.centaxonline.com\/search?searchData=Notification%20No.%2012%2F2012-C.E.&amp;itemType=AP\">Notification No. 12\/2012-C.E.<\/a>, dated 7-3-2012 [Para 3]<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Case Details: Om Gems and Jewellery Versus Deputy Commissioner of Customs (Import)&hellip;<\/p>\n","protected":false},"author":5,"featured_media":2630,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[38,177,47],"tags":[],"class_list":["post-2628","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-customs","category-customs-news","category-custom-case-chronicles"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.9 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Customs Dept. 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