2016 (5) TMI 127 - HC - Customs

Refusal of the adjudicating authority to provide copies of certain documents mentioned in the show cause notice - Import of gold jewellery from Thailand - Availment of benefit of exemption under Customs Notification No.85/2004 dated 31.8.2004 read with Customs Notification No.101/2004 dated 31.8.2012 - Held that - the show cause notice made a mention about certain documents, but, by the orders impugned in the writ petitions, the Department has taken a stand that those documents are not relied upon. Once the Department takes a stand that they are not relying upon certain documents mentioned in the show cause notice, there is no way the appellants could compel the Department to furnish copies of such documents before adjudication. If at all the Department relies upon any document that they do not furnish to appellant, the appellant can always challenge the order in original passed thereafter, on the ground of violation of principles of natural justice. But, at the stage of adjudication proceedings, the appellant cannot forestall the enquiry. Therefore, nothing wrong is found in the order of learned Judge. - Decided against the appellant

Summary

Issues:
Challenging refusal of adjudicating authority to provide copies of documents mentioned in show cause notice.

Analysis:
The case involved writ appeals arising from a common order passed by the learned Judge in two Writ Petitions filed by the appellants, challenging the refusal of the adjudicating authority to provide copies of certain documents mentioned in the show cause notice. The appellants had imported gold jewellery from Thailand under Customs Notification No.85/2004 dated 31.8.2004 read with Customs Notification No.101/2004 dated 31.8.2012. Following a search by officials of the Directorate of Revenue Intelligence, a show cause notice was issued under section 124 of the Customs Act, 1962, claiming that certificates produced by the appellants from parties in Thailand were referred to the Government of Thailand for verification. The appellants sought copies of these documents, but the adjudicating officer, in a letter dated 13.11.2013, claimed that the documents were not to be relied upon in the adjudication proceedings. Subsequently, the appellants filed writ petitions challenging the denial of copies of the documents, which were dismissed by the learned Judge, leading to the present appeals.

The High Court noted that the appellants had approached the court at the stage of the show cause notice, with the adjudication proceedings not yet complete. While the show cause notice referenced certain documents, the Department had stated that they were not relying on those documents. The Court emphasized that once the Department decides not to rely on specific documents mentioned in the show cause notice, the appellants cannot compel the Department to provide copies of those documents before adjudication. If the Department later relies on any undisclosed document, the appellant can challenge the order on the grounds of natural justice violation. However, at the adjudication stage, the appellant cannot halt the inquiry. Therefore, the Court found no error in the learned Judge's order and dismissed the writ appeals, allowing the appellants to raise their points before the adjudicating officer. No costs were awarded, and the connected miscellaneous petitions were also dismissed.