2016 (12) TMI 1801 - HC - Customs

Confiscation of Gold - redemption fine - penalty - N/N. 24/2015-2020 and 25/2015-2020 dated 25th August 2017 Show Cause Notices dated 8th September 2017 - HELD THAT - The confusion appears to have arisen owing to the challenging by the petitioner of Notifications 24/2015-2020 and 25/2015-2020 dated 25th August 2017 and Public Notice 20/2015-2020 also dated 25th August 2017 vide one writ petition i.e. WP(C) 7839/2017 and the Show Cause Notice issued in terms of the said notifications and Public Notice vide the present writ petition i.e. WP (C) 8205/2017. It was owing to this duplication of proceedings that this Court under the impression that the Show Cause Notice dated 8th September 2017 was not challenged expressed its inability to quash the same. As it happens however the Show Cause Notice dated 8th September 2017 issued to the petitioner has in fact been challenged by the petitioner vide WP(C) No. 8205/2017 in which the present Review Petition has been filed. As such to maintain parity with the relief granted to M/s. Mink Tradecom Pvt. Ltd. it would be apposite that the Show Cause Notice dated 8th September 2017 issued to the petitioner be also quashed. The Show Cause Notice dated 8th September 2017 issued to the petitioner is quashed and set aside - review petition allowed.

Summary

Issues:
Condonation of delay in preferring a review petition in WP(C) No. 8205/2017.
Review of judgment regarding Notifications 24/2015-2020 and 25/2015-2020 and Public Notice No. 20/2012-2020.
Challenge of Show Cause Notice dated 8th September, 2017 in WP(C) No. 8205/2017.

Condonation of Delay:
The High Court considered an application for condonation of delay of five days in filing a review petition in WP(C) No. 8205/2017, which was disposed of on 15th October, 2019. The Court found reasonable reasons for the delay and therefore condoned it, allowing the application and disposing of the matter.

Review of Judgment on Notifications:
The review petition sought to challenge a judgment regarding Notifications 24/2015-2020 and 25/2015-2020, and Public Notice No. 20/2012-2020 issued by the Director General of Foreign Trade (DGFT) on 25th August, 2017. The judgment held that the notifications were gazetted only on 28th August, 2017, and could not apply to imports made before that date. Show Cause Notices proposing confiscation of gold coins and penalties were issued based on these notifications. The Court quashed the notifications and held that they did not apply to the imported gold coins, as they had left the Republic of Korea before the notifications came into effect.

Challenge of Show Cause Notice:
In the review petition, it was pointed out that a Show Cause Notice dated 8th September, 2017, issued to M/s. Kundan Care Products Ltd. had been challenged in WP(C) No. 8205/2017, contrary to the earlier judgment's observation. The confusion arose from the duplication of proceedings where challenges to different aspects were made in separate writ petitions. The Court acknowledged the challenge to the Show Cause Notice and quashed it, maintaining parity with relief granted to another party. The Senior Standing Counsel for Custom Authorities did not oppose the prayer, leading to the quashing of the Show Cause Notice and allowing the review petition.

This detailed analysis covers the issues of condonation of delay, review of judgment on notifications, and the challenge of the Show Cause Notice in WP(C) No. 8205/2017 as addressed in the High Court's judgment.