Gujarat High Court
Commissioner Of Customes , Kandla vs Cuthbert Oceans Llp on 4 September, 2025
Author: Bhargav D. Karia
Bench: Bhargav D. Karia
NEUTRAL CITATION
C/TAXAP/47/2025 ORDER DATED: 04/09/2025
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IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
R/TAX APPEAL NO. 47 of 2025
With
R/TAX APPEAL NO. 52 of 2025
With
R/SPECIAL CIVIL APPLICATION NO. 2283 of 2025
With
CIVIL APPLICATION (FOR EXTENSION OF TIME) NO. 1 of 2025
In R/SPECIAL CIVIL APPLICATION NO. 2283 of 2025
With
R/SPECIAL CIVIL APPLICATION NO. 4373 of 2025
With
CIVIL APPLICATION (FOR EXTENSION OF TIME) NO. 1 of 2025
In R/SPECIAL CIVIL APPLICATION NO. 4373 of 2025
With
CIVIL APPLICATION (DIRECTION) NO. 2 of 2025
In R/SPECIAL CIVIL APPLICATION NO. 4373 of 2025
With
CIVIL APPLICATION (FOR JOINING PARTY) NO. 3 of 2025
In R/SPECIAL CIVIL APPLICATION NO. 4373 of 2025
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COMMISSIONER OF CUSTOMES , KANDLA
Versus
CUTHBERT OCEANS LLP
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Appearance:
MR CB GUPTA(1685) for the Appellant(s) No. 1
SHAISHAV S PANDIT(7363) for the Opponent(s) No. 1
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CORAM:HONOURABLE MR. JUSTICE BHARGAV D. KARIA
and
HONOURABLE MR. JUSTICE PRANAV TRIVEDI
Date : 04/09/2025
COMMON ORAL ORDER
(PER : HONOURABLE MR. JUSTICE BHARGAV D. KARIA)
1. Heard learned advocate Mr.C.B.Gupta for the appellant and learned advocate Mr.Shaishav S. Pandit for the respondent in the Tax Appeals and learned advocate Mr.Shaishav S. Page 1 of 8 Uploaded by PALAK BRAHMBHATT(HC01391) on Wed Sep 10 2025 Downloaded on : Wed Sep 10 22:21:33 IST 2025 NEUTRAL CITATION C/TAXAP/47/2025 ORDER DATED: 04/09/2025 undefined Pandit for the petitioners/applicants and learned advocate Mr.C.B.Gupta for the respondents in the Special Civil Applications and Civil Applications.
2.1. These Tax Appeals and Special Civil Applications are arising from the proceedings of the provisional release of the goods being Inshell Walnuts and Black Pepper imported by the respondent-assessee and the petitioners in the respective Tax Appeals and the Special Civil Applications as Domestic Tariff Importer from Kandla Special Economic Zone. 2.2. The goods (in question) were imported from Afghanistan and USA which were unloaded and cleared at Port of Discharge, Mundra and thereafter, transshipped to SEZ Zone. The Directorate of Revenue Intelligence (DRI), Page 2 of 8 Uploaded by PALAK BRAHMBHATT(HC01391) on Wed Sep 10 2025 Downloaded on : Wed Sep 10 22:21:33 IST 2025 NEUTRAL CITATION C/TAXAP/47/2025 ORDER DATED: 04/09/2025 undefined Ludhiana Zonal Unit seized the subject goods alleging improper importation and use of forged documents.
2.3. An application was made on 17.10.2024 as well as on 22.10.2024 requesting for release of goods (in question) under Section 110A of the Customs Act, 1962. The Commissioner of Customs, Kandla vide order dated 07.11.2024 rejected the provisional release of the goods.
2.4. Being aggrieved, an Appeal was preferred before the CESTAT which was allowed by order dated 29.11.2024 permitting the release of the goods on execution of Bond/Surety.
2.5. Being aggrieved by the order dated Page 3 of 8 Uploaded by PALAK BRAHMBHATT(HC01391) on Wed Sep 10 2025 Downloaded on : Wed Sep 10 22:21:33 IST 2025 NEUTRAL CITATION C/TAXAP/47/2025 ORDER DATED: 04/09/2025 undefined 29.11.2024, the Department has filed two Appeals being Tax Appeal Nos.47 of 2025 and 52 of 2025 before this Court.
2.6. This Court passed the following order on 09.04.2025:
"Learned advocate Mr. Shaishav S. Pandit appearing for the petitioners in Special Civil Application No.2283 of 2025 has tendered the affidavit of the petitioner for release of the goods on furnishing the bank guaranteeof 30% of the disputed customs duty alleged to be payable by the petitioner. The same are ordered to be taken on record.
Learned advocate Mr.Pandit submitted that the petitioner shall furnish the bank guarantee within a period of four weeks from today as per the affidavit tendered by the petitioner.
Learned advocate Mr.C.B.Gupta for the respondents under instructions Page 4 of 8 Uploaded by PALAK BRAHMBHATT(HC01391) on Wed Sep 10 2025 Downloaded on : Wed Sep 10 22:21:33 IST 2025 NEUTRAL CITATION C/TAXAP/47/2025 ORDER DATED: 04/09/2025 undefined submitted that after verification of the bank guarantee to be submitted by the petitioner and personal bond already furnished by the petitioner, the respondent shall pass an appropriate order for provisional release of the goods subject to outcome of the pending appeals within period of one week from the date of furnishing the bank guarantee.
Stand over to 11th June, 2025."
2.7. In view of the aforesaid order, the bank guarantees were furnished pursuant to the extension granted by this Court vide order dated 27.06.2025 for amount of Rs.1,26,85,500/- by bank guarantee dated 13th June, 2025 and Rs.70 Lakhs by another bank guarantee of the same date.
2.8. Thereafter, pursuant to the order passed by this Court, verification of the bank Page 5 of 8 Uploaded by PALAK BRAHMBHATT(HC01391) on Wed Sep 10 2025 Downloaded on : Wed Sep 10 22:21:33 IST 2025 NEUTRAL CITATION C/TAXAP/47/2025 ORDER DATED: 04/09/2025 undefined guarantees was carried out by the Department from the Kotak Mahindra Bank Limited and HDFC Bank to confirm issuance of the Bank Guarantees. The Commissioner of Customs, thereafter, by order dated 10th July, 2025 has permitted the provisional release of the goods on furnishing of the bank guarantees and personal bond by the respondent-assessee.
3. Learned advocate Mr.C.B.Gupta therefore submitted that the provisional release made by the aforesaid order shall be subject to the outcome of the Order-in-Original which may be passed after adjudication process is over. It goes without saying that the provisional order is always till the final order is passed.
4. In view of the above facts, the Tax Appeals, by which the following questions were Page 6 of 8 Uploaded by PALAK BRAHMBHATT(HC01391) on Wed Sep 10 2025 Downloaded on : Wed Sep 10 22:21:33 IST 2025 NEUTRAL CITATION C/TAXAP/47/2025 ORDER DATED: 04/09/2025 undefined proposed, would not survive as the respondent- assessee has already furnished the bank guarantees as required by the Department in addition to the condition of personal bond imposed by the order of the Tribunal:
"(i) Whether the Hon'ble CESTAT is right in ordering to release the seized goods only on execution of Provisional Duty Bond / Surety, instead of ordering to release the seized goods on execution of bond with security / Bank Guarantee, under Section 110A of the Customs Act, 1962, considering the facts and circumstances of the present case?
(ii) Whether in the facts and circumstances of the case, the Hon'ble CESTAT is right in allowing the appeal of the Respondent ?"
5. The Special Civil Applications also would not survive as the grievance raised by the Page 7 of 8 Uploaded by PALAK BRAHMBHATT(HC01391) on Wed Sep 10 2025 Downloaded on : Wed Sep 10 22:21:33 IST 2025 NEUTRAL CITATION C/TAXAP/47/2025 ORDER DATED: 04/09/2025 undefined respondent-assessee/petitioners for compliance of the order of the Tribunal has become infructuous in view of the furnishing of the bank guarantees along with the personal bond for provisional release. Accordingly, the Tax Appeals, Special Civil Applications and the Civil Applications are hereby disposed of as having become infructuous. Notice is discharged.
(BHARGAV D. KARIA, J) (PRANAV TRIVEDI,J) PALAK Page 8 of 8 Uploaded by PALAK BRAHMBHATT(HC01391) on Wed Sep 10 2025 Downloaded on : Wed Sep 10 22:21:33 IST 2025