Page 65 - GSTL_23rd April 2020_Vol 35_Part 4

2020 ] ZIP ZAP EXIM (P) LTD. v. UNION OF INDIA 391
Gentlemen,
Sub : Re-export of Seized Goods - R/SCA/ No. 11209/2018 filed by M/s. Zip Zap
Exim Pvt. Ltd., KASEZ Unit in the Hon’ble Court of Gujarat - Reg.
Please refer to your letter dated 28-8-2018 on the above subject matter.
In this context, it is to inform that as per Annexure ‘B’ to the seizure
memo dated 7-3-18 showing details of goods imported by M/s. Zip Zap Ex-
im Pvt. Ltd., KASEZ by resorting to undervaluation but no DTA Bill of En-
try has been filed in respect of the same by domestic buyers/actual import-
ers and the same is detained by DRI vide Panchnama dated 9-1-2018 drawn
at M/s. Zip Zap Exim Pvt. Ltd., Plot No. 397, Sec-IV & Plot No. 406, Sec-I,
KASEZ.
You have sought or re-export of the goods covering at Sr. No. 1 to 6 of
the Annexure-B as shown above. Being a case of undervaluation, in order to
secure the interest of revenue, the Commissioner of Customs has imposed
Bank Guarantee of 25% of the re-determined assessable value.
Being aggrieved by the above said BG condition, you have preferred
R/SCA No. 11209 of 2018 in the Hon’ble High Court of Gujarat at Ahmed-
abad. After taking into facts and circumstances of the case, the Hon’ble
High Court vide oral Order dated 9-8-2018 has modified the condition of
Bank Guarantee to 25% of the Customs Duty that may be leviable on the re-
determined value of the goods. The condition for providing bond for the
remaining value of the goods remains unchanged upon which condition be-
ing fulfilled within three weeks, the petitioner may be permitted to re-
export the goods.
However, vide letter dated 28-8-2018, you have sought for re-export of
the goods by way of furnishing Bank Guarantee of Rs. 9,18,723/-. It is fur-
ther submitted that you are being a SEZ Unit, you are not liable to IGST and
also informed that in any case, the goods being re-exported, there is no
question of levy of IGST.
Whereas as per the Order of the Hon’ble High Court of Gujarat, you
are required to furnish Bank Guarantee of 25% of the Customs Duty that
may be leviable on the redetermined value of the goods for re-export. The
re-determined Customs Duty comes to Rs. 97,55,625/- for Sr. No. 1 to 6 of the
Annexure ‘B’ to the seizure memo dated 7-3-2018 and its 25% comes to Rs.
24,38,906/-, however, you have furnished Bank Guarantee of Rs. 9,18,723/-
by way of not adding the element of IGST part which makes them short of
Rs. 15,20,183/-. The said Bank Guarantee submitted by you does not contain
the necessary auto renewal clause; hence, the BG is not acceptable.
In view of the above, you are required to furnish Bank Guarantee for
remaining amount of Rs. 15,20,183/- for releasing the goods provisionally
for re-export and further, you are requested to furnish Bank Guarantee with
a condition of auto renewal clause without any over-riding clause till the is-
sue involved gets finality from the concerned Bank.
Therefore, it is requested to do needful in the matter as earliest.
Yours Sincerely,
Sd/-
(Yatish G. Patil)
Deputy Commissioner (Adj.)

GST LAW TIMES  23rd April 2020  185