Customs Dept Cannot Encash Bank Guarantee Furnished By Trader During Pendency Of Appeal If Pre-Deposit Is Made: Delhi HC Affirms

The Delhi High Court ruled that the Customs Department cannot encash a bank guarantee provided by a trader during the pendency of an appeal if a pre-deposit has been made. The Court affirmed that the trader’s right to contest the case should not be compromised by the immediate encashment of the guarantee. This decision provides relief to traders who have already made a pre-deposit, ensuring their right to pursue legal remedies without unnecessary financial pressure. It emphasizes the protection of appeal rights during disputes involving the Customs Department.