Order Date – 11 October 2023

Parties: M/s Gunjan Exports Vs Union of India & Ors.

Facts –

• The Petitioner, M/s Gunjan Exports, was issued with a show cause notice dated 03 February 2022 under Section 124 and Section 75(1) of the Customs Act, 1962 read with Rule 16A of Customs, Central Excise & Service Tax Drawback Rules, 1995 demanding wrongly availed duty drawback along with interest and penalty.
• It was contended that pre-notice was not issued before the issuance of a SCN. Hence the SCN is not valid.

Issue –

• Whether the issuance of SCN without pre-notice is valid?

Order –

• The Divisional Bench of Hon’ble High Court observed that the concept of pre-notice consultation stands incorporated only in Section 28 of the Act and more particularly in terms of the First Proviso appended to sub-section (1) of that provision. The action which is proposed to be taken in terms of the SCN, however, rests on the provisions of Section 124 and the 1995 Rules. Those provisions neither mirror nor adopt the principles of pre-notice consultation.
• Hence no merit in the challenge raised to the impugned SCN. The petition fails and shall stand dismissed.