Post introduction of CAROTAR 2020, most of the importers who avail FTA benefits are frequently facing an issue of demand of 100% Bank Guarantee by Customs due to pending COO verification / enquiry pending etc.
Here is a good news to them
that Hon’ble Tripura High Court ordered to accept Indemnity Bond and release
the goods against provisional assessment.
It is apparent that when the
verification is initiated, no record was available with the customs nor any
communication was made to the importer that the verification was being under
Rule 6(1)(a) or Rule 6(1)(b) or Rule 6 (4)(c) of the CAROTAR 2020 and hence,
there was no reference to the security (BG).
The Importers are not
afforded any opportunity to meet the purported deficiency for which the
clearance has been refused. No observation on the legality or regularity of the
process of verification on merit is called for at this stage, considering that
the verification is still inconclusive.
The court has noted that the
importer has not challenged the process of the verification but the importer has made serious allegation
that without affording any opportunity to him in respect of meeting any
deficiency, the importer had been asked to opt or request for provisional
assessment for purpose of clearing the goods on furnishing the security [100%
bank guarantee] for the difference between the duty provisionally assessed
under Section 18 of the Act and the preferential duty claimed.
Hon’ble Tripura High
Court held that “ the assessing officer
and the other authorities are directed to provisionally assess the duty and to
release the goods on obtaining an indemnity bond, to be submitted by the
petitioner binding himself to deposit the duty or the difference between the
duty that would be assessed by the competent authority on verification and the
preferential duty within a period of 7(seven) days. In the event of failure to
deposit the assessed duty on completion of verification within the said
stipulated time, the payable duty shall carry interest at the rate of 15% per
annum till the said duty is deposited”
“ The provisional assessment
in respect of the goods covered under the Bill of Entry dated shall be
completed within a period of two days from the date of receipt of a copy of
this order. After furnishing of the indemnity bond, those goods be released within
next 24 (twenty four) hours”
SHRI PIJUSH
BANIK VERSUS UNION OF INDIA, THE ASSISTANT COMMISSIONER, DIVISION-1, CGST &
SERVICE TAX, THE SUPERINTENDENT OF CUSTOMS, TRIPURA HIGH COURT decided on
08.02.2021
Very Important : In above case the importer has met all criteria of the CAROTAR, 2020 and possessed all information regarding the country of Origin of Goods as per Rule 4 and have furnished all requisite information to customs.
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