Shree Balaji Enterprises vs Union of India

Akil Abdul Hamid Kureshi, J.�Heard the learned counsel for the parties for final disposal of the petition. The petitioners are facing proceedings for recovery and confiscation of goods and penalty issued by the adjudicating authority on March 25, 2013. The case of the Department is that the petitioners indulged in clandestine removal of goods without payment of duty. During the pendency of these proceedings, the Additional Commissioner of Excise passed an order dated July 17, 2013 and permitted provisional release of the goods seized under a panchnama dated September 27/28, 2012, namely:

Such provisional release was on the condition of executing full value bond along with 25% cash security.

The grievance raised in this petition is two fold. One aspect of the grievance is that though under order dated July 17, 2013, the authority permitted the provisional clearance of the finished goods, no such order is passed with respect to raw material. The second aspect of the grievance is that according to the petitioners, the recording of quantity of the goods, raw material as well as finished products in the panchnama dated September 27/28, 2012 was not accurate. Now that the petitioners wish to remove the goods on provisional clearance, it would not be possible for them to later on establish that the actual quantity of material in the premises was much less than what is recorded in the said panchnama. For such purpose, the petitioners request that the goods at the time of clearance be weighed and the weight thereof be recorded in presence of both the sides.

Insofar as the first grievance is concerned, both the sides agree that the petitioners would apply to the competent authority for provisional release of the raw material within a week from today. If such an application is filed, the competent authority shall pass appropriate order thereon, preferably within three weeks thereafter.

With respect to the second grievance, it would be appropriate to permit the petitioners to clear the finished goods as per the provisional release order dated July 17, 2013 in the following manner :

"(i) The petitioners shall intimate the Department the date on which they propose to clear the goods.

(ii) The clearance would be in presence of the representative of the petitioners as well as an officer authorised by the respondents.

(iii) At the time of clearance, the goods being cleared would be weighed. In the panchnama that may be drawn, such weight may be recorded.

(iv) The petitioners would be required to deposit 25% as provided in the provisional release order on the basis of value adopted therein, but calculated on the quantity of the goods released. It is, however, clarified that the bond to be furnished would cover the entire Amount specified in the provisional release order dated July 17, 2013.

(v) It is clarified that this arrangement is only for the purpose of ascertaining the exact quantity of goods being cleared by the petitioners and would have no other bearing on any of the disputed questions, including the pending adjudication of the show cause notice."

If on the application that may be made by the petitioners, the provisional release of the raw material is also permitted by the competent authority, clearance thereof shall also be according to the formula provided hereinabove. With these directions, the petition stands disposed of. Notice is discharged with no orders as to costs.