2018 (10) TMI 1959 - HC - Customs

Principles of Natural Justice - enhancing of value of imported goods from that declared in the bills of entry - grievance of the petitioner is that the impugned order dated 20th August, 2018 has been passed without having followed the principles of natural justice i.e. as in the absence of issuing any show cause notice or granting any hearing to the petitioners - violation of principles of natural justice - HELD THAT - The revenue very fairly concedes that the impugned order dated 20th August, 2018 is not sustainable in law as the principles of natural justice have to be followed while finalising a provisional assessed bills of entry as in this case. In fact it has been so held by this Court in ZUARI AGRO CHEMICALS LIMITED VERSUS UNION OF INDIA AND OTHERS 2014 (2) TMI 552 - BOMBAY HIGH COURT , M/S. TITANIUM TEN ENTERPRISE PRIVATE LTD. VERSUS UNION OF INDIA, MEMBER (CUSTOMS) , CENTRAL BOARD OF EXCISE CUSTOMS, COMMISSIONER OF CUSTOMS (IMPORTS) , JNCH, THE DEPUTY COMMISSIONER OF CUSTOMS IMPORTS 2017 (11) TMI 259 - BOMBAY HIGH COURT , BALAJI IMPEX VERSUS UNION OF INDIA OTHERS 2011 (7) TMI 291 - BOMBAY HIGH COURT . The impugned order dated 20th August, 2018 is quashed and set aside. The respondents would finalise the three bills of entry, two of them dated 9th February, 2018 and one dated 9th March, 2018, which are the subject matter of this petition after following the principles of natural justice i.e. issuing a show cause notice, hearing the petitioner and passing a speaking order - Petition disposed off.

Summary

Issues:
Challenging order of Assistant Commissioner of Customs for enhancing value of imported goods without following principles of natural justice.

Analysis:
The writ petition under Article 226 of the Constitution of India challenged an order passed by the Assistant Commissioner of Customs dated 20th August, 2018. The impugned order finalized three bills of entry, two dated 9th February 2018 and one dated 9th March, 2018, which enhanced the value of imported goods from that declared in the bills of entry. The petitioner's grievance was that the order was passed without following the principles of natural justice, specifically without issuing any show cause notice or granting a hearing to the petitioners.

The counsel for the revenue conceded that the impugned order was not sustainable in law as the principles of natural justice were not followed in finalizing the provisional assessed bills of entry. The court referred to previous judgments such as Zuari Agro Chemicals Ltd. Vs. Union of India, Titanium Ten Enterprise Pvt. Ltd. Vs. Union of India, Balaji Impex Vs. Union of India, and Deepak Fertilisers and Petrochemicals Vs. Union of India, emphasizing the requirement to adhere to natural justice principles in such cases.

As a result, the court quashed and set aside the impugned order dated 20th August, 2018. The respondents were directed to finalize the three bills of entry after following the principles of natural justice, including issuing a show cause notice, hearing the petitioner, and passing a speaking order. The writ petition was disposed of accordingly, with the court ensuring that due process was followed in the finalization of the bills of entry dated 9th February, 2018, and 9th March, 2018.