Once Court Orders Release Of Bank Guarantee Furnished By Trader, Customs Dept Can't Hold Back Compliance And Direct Adjustment In Demand Order: Delhi HC

The Delhi High Court ruled that once a court orders the release of a bank guarantee furnished by a trader, the Customs Department cannot withhold compliance or direct its adjustment in a demand order. The case involved a dispute over a bank guarantee that had been released by the court. Customs sought to use it against outstanding dues, but the Court found this to be improper, as the legal process for releasing the guarantee had been completed. The ruling ensures that the Customs Department must follow judicial orders and cannot arbitrarily adjust or delay the release of guarantees.