Order date – 29 March 2023

Parties – Commissioner of Customs Vs Anurag Trading Company

Facts –

• The Respondent, ANURAG TRADING COMPANY, filed 39 Bills of Entry, whereby the respondent had imported goods for supply to the Ordinance Equipment Factory, Kanpur (OEF) without payment of duty.
• The allegation against the respondent is that they had availed the benefit of a notification and imported the goods by submitting forged custom duty exemption certificates.
• A Show Cause Notice dated 08.07.2011 issued to the respondent regarding certain Bills of Entries filed between August 1996 and January 2004.

Issue –

• Whether the order passed by the adjudicating authority barred by limitation?

Order –

• The Court observes that even though no period of limitation is prescribed under the statute, the required action must be taken within a reasonable period.
• Reliance was placed in the case of State of Punjab & Ors. v. Bhatinda District Cooperative Milk Producers Union Ltd. to support the notion that statutory authority must exercise its jurisdiction within a reasonable period.
• The period of limitation as provided under Section 28 of the Customs Act is a period of five years from the relevant date. The Show Cause notice was issued approximately nine years after the last Bill of Entry and, therefore, it was held that it not issued within a reasonable period. As a result, there is no substantial question of law that arises for consideration by this Court in this appeal.
• The appeal is dismissed.