M/S Selva Vinayaga Tex vs Superintendent Of Customs

Kerala High Court

M/S Selva Vinayaga Tex vs Superintendent Of Customs on 28 June, 2024

Author: Murali Purushothaman

Bench: Murali Purushothaman

              IN THE HIGH COURT OF KERALA AT ERNAKULAM
                              PRESENT
          THE HONOURABLE MR.JUSTICE MURALI PURUSHOTHAMAN
       FRIDAY, THE 28TH DAY OF JUNE 2024 / 7TH ASHADHA, 1946
                      WP(C) NO. 10864 OF 2024
PETITIONER:

          M/S SELVA VINAYAGA TEX,
          1/113-B, SP GARDEN BACK SIDE,
          KARUMAPALAYAM, AVINASHI TQ, TIRUPPUR.
          REPRESENTED BY ITS PROPREITOR -
          SHANMUGA SUNDARAN PIN - 641654

          BY ADVS.
          G.HARIHARAN
          PRAVEEN.H.(K/1441/2002)
          K.S.SMITHA(K/106/2012)
          B.R.SINDU(K/632/2002.)
          V.R.SANJEEV KUMAR(K/000741/2017)
          V.ROHITH(K/000324/2024)
          AFNA V.P.(K/0128/2024)



RESPONDENT:

          SUPERINTENDENT OF CUSTOMS,
          CUSTOMS HOUSE, WILLINGDON ISLAND,
          COCHIN, PIN - 682009

          BY ADV P.G.JAYASHANKAR




     THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON
28.06.2024, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
 WP(C) NO. 10864 OF 2024   : 2 :




                      JUDGMENT

The petitioner is a proprietorship carrying on the business of manufacture and export of apparels.

Pursuant to the seizure of certain garments from the petitioner, Ext.P6 provisional release order was passed by the respondent on the following conditions:

"a. Execution of Bond for Rs.1,06,62,972/- (Rupees One Crore six Lakh Sixty Two Thousand Nine Hundred and Seventy Two only); and b. Furnishing of a Bank Guarantee for Rs.13,00,000/- (Rupees Thirteen Lakh only) having auto renewal clause or cash deposit for the same amount in favour of the Commissioner of Customs, Custom House, Cochin."

Aggrieved by the aforesaid conditions, the petitioner has approached this Court.

2. When this writ petition came up for consideration on 14.06.2024, the learned counsel for the petitioner submitted that directions may be issued to the respondent to modify the conditions in Ext.P6 provisional release order by accepting Fixed Deposit receipt covering the amount in lieu of Bank Guarantee.

3. The learned Standing Counsel, on instructions from the respondent, submits that the petitioner's request to submit the Fixed Deposit receipt, covering the amount referred to in Ext.P6 in lieu of Bank Guarantee can be accepted subject to the fulfillment of the following conditions:

          "a.   The     FDR     should     be    from     a
          nationalized bank.
                b.     The    FDR      should    be     lien

marked in favour of the Commissioner of Customs, Kochi.

c. The Original FD receipt should be handed over by the party to the Department, which shall be kept in safe custody by the Department.

d. The Department shall obtain a letter from the bank acknowledging the lien marking.

e. No variation to the FDR will be permissible, except based on explicit written permission by the Commissioner of Customs.

f. The Commissioner of Customs be given the authority to liquidate the FD Receipt, and to appropriate the amounts to the Government Account, if so required, after the proceedings are completed, without the approval of the party (exporter).

g. The FDR must remain valid in a manner that allows it to be liquidated immediately upon request by the Commissioner of Customs and it should be automatically renewed until the Commissioner of Customs, Kochi orders its liquidation."

4. The learned counsel for the petitioner submits that the petitioner can furnish the Fixed Deposit receipt in lieu of Bank Guarantee on the conditions aforesaid.

5. Accordingly, there will be a direction to the respondent to provisionally release the seized article by accepting the Fixed Deposit receipt covering the amount referred to in Ext.P6 in lieu of Bank Guarantee, subject to the conditions aforesaid, within a period of ten days from the date of furnishing the Fixed Deposit.

The writ petition is disposed of with the above direction.

Sd/-

MURALI PURUSHOTHAMAN JUDGE SB WP(C) NO. 10864 OF 2024 : 6 : APPENDIX PETITIONER EXHIBITS Exhibit P1 A TRUE COPY OF THE EXPORT INVOICE Exhibit P2 THE TRUE COPY OF THE TAX INVOICE OF THE PETITIONER BEARING NO. 9, DATED 18.05.2022 Exhibit P3 A TRUE COPY OF THE SEARCH NOTICE BEARING THE REFERENCE NUMBER CBIC-DIN- 2023-1281O1000000BC54, DATED 13.12.2023 Exhibit P4 A TRUE COPY OF THE SEIZURE MEMORANDUM DATED 24.11.2023 BEARING REFERENCE NUMBER F. NO. CUS/SIIB/INT/730-/2023- SIIB Exhibit P5 A TRUE COPY OF THE RESTRAINT ORDER BEARING REFERENCE NUMBER F. NO. CUS/SIIB/INT/730/2023-SIIB, DATED 24.11.2023 Exhibit P6 THE TRUE COPY OF THE PROVISIONAL RELEASE ORDER ISSUED BY THE RESPONDENT FOR THE SEIZED GOODS COVERED UNDER SHIPPING BILL NO. 5202435, BEARING REFERENCE NUMBER F. NO.

CUS/SIIB/INT/730/2023-SIIB, DATED 21.12.2023