The Delhi High Court has held that placing matter in the callbook by the customs department would not justify non-adjudication of notice within a reasonable period.
The bench of Justice Prathiba M. Singh and Justice Amit Sharma has observed that despite the reply having been filed to the show-cause notice, there has been no adjudication. There existed no reason for the non-adjudication of the show-cause notice and therefore the facts do not reveal any glaring impossibility for the Customs Department to deal with the show-cause notice.
The Petitioner/assessee is in the business of import and trade of car accessories during the period 2010 to 2013. It is submitted that certain investigations was initiated by the Directorate of Revenue Intelligence (DRI) and the show cause notice was issued demanding duty along with interest and imposition of penalty and fine in lieu of confiscation of goods.
The notice was put in the callbook on 31st May, 2021 and was finally retrieved and the third hearing was held on 11th July and 18th July, 2023. While the fourth hearing on the show cause notice was fixed on 16th and 23rd August, 2023, the writ petition was filed.
The petitioner contended that under Section 28(9) of the Customs Act, 1962 there is a specific time-period fixed for the purpose of adjudication of show-cause notices and determination of amount of duty or interest. The period specified in the said provision is six months and a maximum period of one year. The substantial delay of almost eight years in adjudication of the show-cause notice cannot be justified by relying upon the phrase “where it is possible to do so” as contained in Section 28(9) of the Customs Act.
The department contended that the delay in the adjudication was initially due to the decision in Mangli Impex Ltd., when the matter was put in the call book and thereafter, due to some issues between the DRI and the Customs Department as to who would be the proper officer to adjudicate the show-cause notice. These were genuine difficulties which existed. Thus, there was complete justification and an impossibility for the Department to adjudicate.
The court, while allowing the petition, quashed the show-cause notice.
Case Details
Case Title: Balaji Enterprises Versus Additional Director General New Delhi & Ors.
Case No.: W.P.(C) 11207/2023 & CM APPL. 43666/2023
Date: 19/12/2024
Counsel For Petitioner: Shubhankar Jha
Counsel For Respondent: Harpreet Singh
