ANIRUDDHA BOSE,J. - (1.) The present appeal by the Revenue is against a decision of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) directing in substance dilution of the terms for provisional release of certain electronic goods under section 110A of the Customs Act, 1962. These goods were seized on the allegation of mis-declaration. Mr.Bose, learned counsel appearing on behalf of the assessee has raised the question of maintainability of this appeal. According to him, the appeal relates to dispute on valuation of goods and hence the Hon'ble Supreme Court is the proper forum for adjudicating this appeal under section 130E of the Customs Act, 1962. The point on which Revenue wants us to admit this appeal, however, is on jurisdiction of the CESTAT to reduce the security amount determined by the Adjudicating Authority. According to him, this question involves substantial question of law.
(2.) We have considered the submissions of learned counsel appearing for the parties. The dominant question here is on jurisdiction of the Tribunal to reduce the security terms for provisional release of the goods and the dispute per se is not on valuation of the seized goods. The core issue involved in this appeal is whether the Tribunal has the power or jurisdiction to dilute the terms set by the adjudicating authority for provisional release of goods. As such, we decline to accept the submission of the assessee that the question involves or relates to value of the goods. That dispute is incidental to the main issue. We accordingly admit the appeal on following point, which in our opinion involves substantial question of law:- "Whether the Appellate Tribunal has jurisdiction to dilute the security terms for provisional release of goods having regard to the provisions of section 110A of the Customs Act read with Section 2(1) thereof."
(3.) In this case, the seized goods were permitted to be released by the adjudicating authority on following terms:- "11.1 For Bill of Entry No.3033470 dated 29.08.2017 (i) Execution of Bond for the value of Rs. 2,84,31,400/- (ii) Execution of Bank Guarantee (with auto-renewal clause)/Security Deposit for estimated differential duty and probable fine and penalty under provisions of the Customs Act'1962 of Rs. 1,59,37,000/-(Rs. One Crore Fifty Nine Lakh Thirty Seven Thousand only) 11.2 For Bill of Entry No.3081944 dated 02.09.2017 (i) Execution of Bond for the value of Rs. 1,03,02,445/- (ii) Execution of Bank Guarantee (with auto-renewal clause)/Security Deposit for estimated differential duty and probable fine and penalty under provisions of the Customs Act'1962 of Rs. 63,00,000/-(Rs.Sixty Three Lakh only)";