2015 (11) TMI 761 - HC - Customs

Duty drawback claim - Violation of principle of natural justice - Held that - From a reading of the order of adjudication dated 23rd April, 2010, copy of which is at pages 26 and 27 of the paper book that the show cause notice was sent on the address mentioned and the envelope was left by the postal authority at the said place. We do not see how such an act on the part of the postal authority enabled the Deputy Commissioner of Customs to record a satisfaction that the Petitioners are duly served. - since the adjudication order violates the principles of natural justice for want of notice and hearing that it is set aside. - Decided in favour of assessee.

Summary

Issues:
Challenge to impugned attachment orders and Exparte OrderinOriginal based on lack of proper service and violation of natural justice.

Analysis:
The Petitioner sought relief through a Writ Petition under Article 226 of the Constitution of India to quash the Notice of Demand, attachment orders, and Exparte OrderinOriginal. The contention raised was regarding the alleged lack of proper service of show cause notice and orderinoriginal related to a drawback claim for exports. The Petitioner argued that the adjudication order was enforced without proper proceedings, violating principles of natural justice.

Mr. Mehta, representing the Petitioner, highlighted the absence of records of proceedings and the lack of proper service of the show cause notice. The Deputy Commissioner's assertion of serving the notice at the firm's office was deemed insufficient to prove proper service. The Petitioner only became aware of the orderinoriginal when a demand notice was issued, leading to an application under the Right to Information Act for details.

The Petitioner contended that enforcing an order made in their absence through coercive means was unjust. Mr. Jetly, representing the Respondent, was accused of raising a plea belatedly to avoid legal consequences. Upon review of the adjudication order, the court found the service of notice inadequate, leading to a violation of natural justice principles due to the lack of proper notice and hearing for the Petitioner.

The court set aside the adjudication order based on the violation of natural justice and ordered the Petitioner to be served with the show cause notice and related documents within two weeks. The Petitioner was instructed to appear for adjudication within four weeks, with a mandate for the competent authority to dispose of the proceedings within eight weeks from appearance. Coercive proceedings were stayed for 12 weeks, with a clarification that no opinion was expressed on the merits of the show cause notice and allegations therein.