Custom
TRT-2025-
New Delhi High Court
Date:-26-09-23
In:-
Issue Favourable to Tax Payer ?:-
Order Date – 26 September 2023
Parties: Gala International Pvt Ltd, Ganesh Overseas Pvt Ltd, Shirdi Exim Pvt Ltd Vs Additional Director General and Ors.
Facts –
- The Appellants, Gala International Pvt Ltd, Ganesh Overseas Pvt Ltd, Shirdi Exim Pvt Ltd, were served with a common show cause dated 30.04.2009 alleging duty evasion.
- The Show cause notice could not be adjudicated as it involves complicated issues and it was not practicable to complete the adjudication within the period of one year as contemplated under Section 28(9) of the Customs Act, and the same was thus placed in the call book.
- The said notice was retrieved from the Call Book on 20.01.2023 and a common letter were issued to the petitioners to appear for hearing in respect of the impugned show cause notice.
Issue –
- Whether it is permissible to adjudicate show cause notice after the period mentioned in Section 28(9) of the Customs Act?
Order –
- The Divisional Bench of Hon’ble High Court observed that admittedly, the petitioners were not informed that the impugned show cause notice was put in the Call Book. Thus, the present petitions are covered by the ratio of the decision of this Court in Nanu Ram Goyal v. Commissioner of CGST and Central Excise, Delhi & Ors. The deferring of the adjudication of the impugned show cause notice on account of the Call Book procedure was not justified.
- It is also apparent that the impugned show cause notice was not adjudicated for a period of over eight years (30.04.2009 to 21.07.2016) even though there was no impediment in adjudicating the same.
- The controversy raised is squarely covered by the recent decision of this Court in Swatch Group India Pvt. Ltd. & Ors. v. Union of India & Ors. In view of the above, it is no longer open for the respondents to proceed with the adjudication of the impugned show cause notice. Accordingly, the impugned letters recommencing the adjudication proceedings are set aside. Since the period for adjudication of the impugned show cause notice has elapsed, the same cannot be adjudicated.
- The writ petition is allowed.
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