JUDGMENT :

SONIA GOKANI, J.

1. The petitioner is a Private Limited Company and is engaged in decor paper printing and uses uncoated printing paper, decor paper, base paper and decor base paper as raw material for the purpose of final printing. It purchases the raw material domestically as well as imports the raw material from companies in China.

2. The Petitioner, in the past, has imported the raw materials from Xianhe Company Limited (hereinafter referred to as "Xianhe") and Zhejiang Xianhe New Material Sales Company Limited (hereinafter referred to as "Zhejiang"). The Petitioner since December, 2019 has been importing the raw material from Kingdecor (Zhejiang) Company Limited (hereinafter referred to as "Kingdecor") which is a joint venture company between Xianhe, and Schattdecor, a Chinese and a German Company respectively. The Kingdecor has two related companies Xianhe and Zhejiang in China.

2.1. The Kingdecor supplies the raw material in India through two agencies; M/s. Saraf Sales Corporation and Shah International. The petitioner imported the raw material from the Kingdecor through the agent M/s. Saraf Sales Corporation. The Respondent No. 3 carried a search operation on 11.05.2022 at the premise of the petitioner and inspected the stock of uncoated paper know as raw material at the factory premise and warehouse of the Petitioner. It detained the raw materials on the grounds of misdeclaration of producer’s source and lower payment of anti-dumping duty for import from other producers from China. The panchnama stated that search and investigation was issued by the respondent no.3 dated 11.05.2022.

2.2. A detention memo was issued by the respondent no. 3 under Section 110 of the Customs Act detaining raw material on 11.05.2022 and valued the raw material at Rs. 17,87,55,684/- (Rupees Seventeen Crores Eighty Seven Lakhs Fifty Five Thousand Six Hundred Eighty Four). A supratnama for the Safe Custody of the detained raw materials was also issued on the very day. On 18.06.2022, the respondent no.3 further visited the premises of the petitioner for the verification of the detained raw materials. During the verification conducted by respondent no.3, the raw material was valued at Rs. 28,07,58,462/- (Rupees Twenty Eight Crores Seven Lakhs Fifty Eight Thousand Four Hundred Sixty Two) due to some clerical error and weight of the raw material.

Another panchnama was issued by the respondent no. 3 changing and correcting the valuation of raw materials. The seizure memo was given under Section 110(1) of the Customs Act on 18.06.2022 stating that the material has been seized and liable for confiscation under Section 111 of the Customs Act.

2.3. The raw material imported by the petitioner, according to the respondent, is not produced by the Kingdecor because the marking on the packing tape indicated "Crane Speciality Paper Xianhe Co. Ltd. Paper Branch". The raw materials which are not produced by Kingdecor are liable for an antidumping duty of USD 542 per metric ton instead of USD 116 per metric ton and therefore, it is the case of the respondent that the petitioner evaded the anti-dumping duty amounting to Rs.7,89,23,278/- (Rupees Seven Crores Eighty Nine Lakhs Twenty Three Thousand Two Hundred Seventy Eight). The material which has been seized has been kept in the safe custody by way of a supratnama and the last one issued is of 18.06.2022.

2.4. On 20.06.2022, the petitioner requested the respondent no.2 for the provisional release of the raw materials seized on 18.06.2022. A request was also made to respondent no.3 for such provisional release. The Commissioner of Customs, Mundra also was sent a communication on 20.06.2022. The respondent no. 2 vide its communication dated 27.07.2022 approved the request of the petitioner for provisional release of the raw materials subject to the condition of the petitioner executing a bond of Rs.24,41,3