Custom
TRT-2025-
Madras High Court
Date:-24-02-23
In:-
Issue Favourable to Tax Payer ?:-
Order Date – 24 February 2023
Parties: M/s Texel Industries Vs The Assistant Commissioner of Customs (Drawback - AIR), The Assistant Director
Facts –
- The Petitioner, M/s Texel Industries, was issued with a show cause notice in the year 2009 and a personal hearing was granted to them in the very same year.
- The impugned Order-in-Original, dated 25.09.2020 passed under Rules 16A of the Customs and Central Excise Duty Drawback Rules, 1995 read with Section 75 and 75 A (2) of the Customs Act,1962 after a lapse of more than eleven years.
Issue –
- Whether order passed after a lapse of more than eleven years of show cause notice is valid?
Order –
- The Single Bench of Hon’ble High Court observed that decision of the Hon'ble Supreme Court in the case of Bhattinda District Co-operative Milk P. Union Ltd., squarely apply to the facts of the instant case in which it was held that though limitation is not prescribed under Section 21 of the said Act, the statutory authority must exercise jurisdiction, within a reasonable period.
- The respondents have not passed the Order in- Original within a reasonable time, despite the fact that the show cause notice was issued as early as in the year 2009, by following the above decision the court held that the impugned Order-in-Original has to be quashed.
- However, it is made clear that the petitioner is also not entitled to claim refund of money that they have already paid in the year 2007 itself, which is much prior to the date of show cause notice also on the ground that said claim is also barred by limitation.
- Hence the writ petition is closed.
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