2016 (3) TMI 4 - HC - Customs

Seeking cross-examination of the witnesses and inspection of records - Allegation of evasion of Export Duty and availment of Drawback and DFRC Duty Free Replacement Scheme in exporting consignments by misleading semi-finished leather as finished leather - Held that - There is no reason for us to doubt that the authorities would not follow the mandatory procedure or will take no decision on the petitioners request re inspection of record and cross-examination of witnesses, while deciding the matter on merits. The petitioners may put in appearance without prejudice to the adjudication of their request for cross-examination or inspection of records, as sought by them. - The Prescribe Authority will deal with both the issues by way of a reasoned order. - Decided partly in favour of appellant.

Summary

Issues:
1. Show-cause notice for alleged evasion of Export Duty and misuse of schemes.
2. Delay in taking action by authorities.
3. Request for cross-examination of witnesses and inspection of records.
4. Apprehension of final order without deciding on the request.

Analysis:
The judgment pertains to a case where a partnership firm and its partner were served with a show-cause notice by the Directorate of Revenue Intelligence regarding alleged evasion of Export Duty and misuse of schemes by misrepresenting 'semi-finished leather' as 'finished leather'. The petitioners submitted an interim reply followed by a request for cross-examination of witnesses and inspection of records. Despite delays in action by the authorities, the petitioners continued to seek clarification and reiterated their requests through subsequent replies.

The petitioners expressed concerns that the Prescribed Authority might pass a final order without addressing their requests for inspection of records or cross-examination of witnesses. The High Court, after hearing the counsel for the petitioners, expressed confidence that the authorities would follow the mandatory procedures and consider the petitioners' requests before making a decision on the merits of the case. The court directed the petitioners to appear before the Commissioner of Customs (Preventive) and assured that the Prescribed Authority would address both issues raised by the petitioners in a reasoned order.

In conclusion, the High Court disposed of the writ petition, instructing the Prescribed Authority to consider the petitioners' requests for cross-examination and inspection of records while adjudicating the matter on its merits. The judgment emphasized the importance of following due process and providing a fair opportunity for the petitioners to present their case effectively.