CESTAT Quashes Provisional Release Order of Seized Goods based on Furnishing Bank Gurantee as Circular not require furnishing same for Star Export Houses

The Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has quashed a provisional release order of seized goods that was based on furnishing a bank guarantee, specifically because the relevant circular does not require a bank guarantee for Star Export Houses. This ruling provides crucial relief to Star Export Houses, which are recognized for their export performance and often enjoy special facilitation benefits. CESTAT’s decision ensures that customs authorities adhere to their own circulars and policies, preventing arbitrary demands for bank guarantees from eligible entities and promoting smoother trade operations for recognized exporters.