CUSTOMS, EXCISE & SERVICE TAX APPELLATE TRIBUNAL AHMEDABAD REGIONAL BENCH, COURT NO. 2 CUSTOMS APPEAL NO. 11590 OF 2025 [Arising out of CUS/APR/BE/MISC/1812/2025-Gr-1 dated 10/12/2025 passed by Assistant Commissioner of Customs, Import Assessment, Mundra]

SHREEJI AGRI COMMODITY PVT LTD Appellant Office No. 1205, The Spire, Near Ayodhya Circle, 150 Feet Ring Road, Rajkot-360007 Gujarat Vs.

ASSISTANT COMMISSIONER OF CUSTOMS, IMPORT ASSESSMENT, MUNDRA Respondent Customs House, Mundra, Kutch, Gujarat-370201 Appearance:

Shri Manish Jain, Advocate for the Appellant Smt. Sunita Menon, Superintendent (AR) for the Respondent CORAM:

HON'BLE Dr. AJAYA KRISHNA VISHVESHA, MEMBER ( JUDICIAL )

FINAL ORDER NO._10031/2026 Date of Hearing : 12/01/2026 Date of Decision : 21/01/2026 Dr. AJAYA KRISHNA VISHVESHA This appeal is directed against the communication / order / letter dated

10^th December, 2025 issued under the orders of Commissioner of Customs, Mundra through which the learned Assistant Commissioner of Customs, MCH has granted permission for provisional release of goods on submission of bond equal to value of the goods i.e. Rs. 9,11,24,983/--00 (Rupees Nine Crores Eleven Lacs Twenty Four Thousand Nine Hundred and Eighty Three only) and bank guarantee (with Auto Renewal Clause) of Rs. 6,31,96,584-00 (Rupees Six Crores Thirty One Lacs Ninety Six Thousand Five Hundred and Eighty Four only)

as per para 2.2 of circular no. 35/2017-Customs dated 16.08.2017.

1.1 Brief facts of the case are that appellant is inter alia engaged in the trading, processing and retail of various agri-commodities, including spices, pulses and oilseeds. In the regular course of business, the Appellant imported “coriander seeds” under duty exemption Notification No. 21/2023-Cus dated 01.04.2023 against various Advance Authorizations issued during the period between February 2024 to February 2025.

1.2 According to the department, the appellant has diverted the said imported coriander seeds as such into the domestic market without doing any processing of the same which is in violation of actual user condition as provided in Customs Notification No. 21/2023- Customs dated 01.04.2023. It is also alleged that the said imported coriander was stored in various warehouses in the name of other parties. Further, it was also alleged by the department that to fulfil the export obligation, the Appellant is procuring the coriander seeds from the domestic market rather than processing the imported coriander seeds under Customs Notification No. 21/2023-Cus.

1.3 Based on the above allegation, department vide Seizure Memo dated 18.06.2025 seized the coriander seeds stored in various warehouses. On request of appellant, department vide impugned order dated 10.12.2025 granted permission for provisional release of the subject goods on submission of bond equal to the value of the goods i.e. Rs. 9,11,24,983/- and Bank Guarantee of Rs, 6,31,96,584/-as per Para 2.2 of Circular No. 35/2017 dated 16.08.2017. The present appeal is against the above mentioned order for provisional release of goods. Appellant has challenged the conditions omposed under of the provisional release order passed under section 110A of the Customs Act in the present appeal.

2.1 Learned Counsel for the appellant, submitted that appellant has never sold imported coriander seeds in domestic market, thus there is no violation of actual user condition under Notification No. 21/2023-Cus. He also submitted that imported coriander seeds were always brought to the factory of the Appellants and it undergo a detailed process of cleaning and sorting etc. After the said detailed process, the appellant either export coriander seeds or transfers the processed coriander seeds to the third-party exporters for further export. Sometimes, the processed coriander are stored at various warehouses. Since the space in the warehouse is already booked by known parties/friends, appellant used their names for storing the processed coriander seeds. Thus, appel