ALO Law Office- IDT Tax I Arbitration I Litigation
Date: 01.07.2025
CESTAT Allahabad Quashes Bank Guarantee Condition for Provisional Release of Seized Betel Nuts
The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Allahabad, in Final Order No. 70433/2025 dated 30.06.2025, ruled in favour of M/s B P Wire Industry, setting aside the condition of furnishing bank guarantees for the provisional release of seized betel nuts and betel nut powder. The case arose out of alleged misdeclaration and subsequent seizure under the Customs Act, 1962.
Background of the Case
M/s B P Wire Industry, a Star Export House, had imported betel nuts under the MOOWR Scheme for the manufacture and export of flavoured supari. These goods were detained and later seized by the Directorate of Revenue Intelligence (DRI) on the grounds of alleged misdeclaration under Sections 111(m) and 111(o) of the Customs Act for imports, and under Section 118(i) for exports.
The DRI later withdrew its objection to the provisional release and communicated “No Objection” via a letter dated 25.09.2024. However, the Commissioner (Customs Preventive), Lucknow, imposed a stringent bank guarantee condition for provisional release, leading the appellant to approach the Delhi High Court and then CESTAT.
This Article has been written by Shri Ravi Shekhar Jha, Advocate Delhi High Court based on his interpretation of the law. He can be reached at his email id intelconsul@gmail.com or on his Mobile +91-9999005379.
Source: CESTAT Allahabad
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