2022 (3) TMI 1452 - HC - Customs

Demand of differential duty - no final assessment order have been passed (although various dates have been mentioned) by following the principles of natural justice and/or any speaking order so as to have proper adjudication before the Appellate forum - principles of natural justice - HELD THAT - Issue formal notice for 18th April, 2022. Till the next date, no coercive steps shall be taken for recovery of the demand of differential duty qua the said 36 bills of entry.

Summary

Issues:
1. Failure to pass final assessment orders following principles of natural justice and speaking order before the Appellate forum.
2. Alleged non-compliance with Customs (Finalisation of Provisional Assessment) Regulations, 2018.

Analysis:

Issue 1:
The petition raised concerns regarding the absence of final assessment orders for 36 bills of entry, as detailed in Annexure-5 series, despite various dates being mentioned. The petitioner argued that the orders were not passed in accordance with the principles of natural justice and lacked a speaking order necessary for proper adjudication before the Appellate forum. The contention highlighted the importance of complying with procedural fairness and providing a detailed rationale for the assessment decisions.

Issue 2:
The petitioner emphasized that most of the final assessment orders were issued after the enforcement of the Customs (Finalisation of Provisional Assessment) Regulations, 2018, which specifically mandate the passing of a speaking order following the principles of natural justice. The alleged non-compliance with these regulations raised significant concerns regarding the validity and legality of the assessment process, indicating a potential procedural irregularity that needed to be addressed.

The court, presided over by Jaswant Singh and M.S. Raman, JJ., acknowledged the arguments presented by Mr. Hardik Modh and Mr. Mukesh Panda, Advocates, along with Mr. Radheshyam Chimanka, Senior Standing Counsel representing Opposite Party Nos. 2 to 5. In response to the issues raised, the court ordered the formal notice to be issued for a hearing on 18th April 2022. Mr. Radheshyam Chimanka waived the notice on behalf of Opposite Party Nos. 2 to 5 and was directed to be served with additional copies of the writ petitions. An additional counter was instructed to be filed to address the factual contentions raised in the case. Furthermore, the court directed that no coercive steps should be taken for the recovery of the demand of the differential duty concerning the 36 bills of entry until the next date of hearing. Finally, an urgent certified copy of the order was to be issued in accordance with the rules.