2017 (12) TMI 1516 - HC - Customs

Confiscation - personal penalties - old and used Digital Multifunction Printers/Devices imported by the petitioner - delay in adjudication proceedings - alternative remedy - Held that - the petitioner cannot be heard to contend that the department had confirmed the demand against it, or found against it on grounds which were not specifically put to them, through a show cause notice - the mere fact that a show cause notice was subsequently issued to the petitioner did not, as indeed it could not, work to the prejudice of the petitioner, because the show cause notice only limited the grounds on which the adjudicating authority could confirm the proposals against the petitioner - the challenge in the writ petition against Ext.P6 order cannot be legally sustained, and the petitioner ought to be relegated to his alternate remedy of approaching the Appellate Tribunal against the said order. Taking note of the urgency that is projected by the learned Senior Counsel for the petitioner, I direct that, if the petitioner in the writ petition, as also the partners of the petitioner partnership, against whom personal penalties are imposed by Ext.P6 order, prefer appeals against Ext.P6 order, before the Central Excise and Customs Appellate Tribunal, Bangalore, within a period of two weeks from the date of receipt of a copy of this Judgment, after complying with all the procedural formalities, the Tribunal shall endeavour to consider and dispose the appeals on merits, within an outer time limit of three months from the date of receipt of a copy of this judgment - petition disposed off.

Summary

Issues:
1. Alleged violation of rules of natural justice in the confiscation of imported goods.
2. Granting of redemption of goods subject to re-export and payment of fine.
3. Delay in adjudication proceedings and imposition of personal penalties.

Analysis:

Issue 1: Alleged violation of rules of natural justice in the confiscation of imported goods
The petitioner challenged the order of the Commissioner of Customs directing confiscation of old and used Digital Multifunction Printers/Devices imported by the petitioner. The petitioner contended that there was an alleged violation of the rules of natural justice as they were not granted a further opportunity of hearing after submitting a reply to the show cause notice. The High Court found that the petitioner had waived the requirement of a show cause notice initially to expedite the adjudication process. The Court held that the subsequent issuance of a show cause notice did not prejudice the petitioner as it only limited the grounds on which the authority could confirm the proposals. The Court concluded that the non-extension of a further hearing did not vitiate the order and directed the petitioner to approach the Appellate Tribunal for remedy.

Issue 2: Granting of redemption of goods subject to re-export and payment of fine
The petitioner was permitted to redeem the confiscated goods for re-export and payment of a fine under Section 125 of the Customs Act, 1962. The petitioner argued that similar goods had been permitted for import by Customs Authorities for home consumption. The High Court directed the petitioner and partners to file appeals against the order before the Central Excise and Customs Appellate Tribunal within two weeks. The Tribunal was instructed to consider and dispose of the appeals within three months due to the urgency of the matter and the costs incurred by the petitioner for storage of the goods.

Issue 3: Delay in adjudication proceedings and imposition of personal penalties
The petitioner raised concerns about the delay in adjudication proceedings and the imposition of personal penalties by the customs authorities. The High Court acknowledged the urgency presented by the petitioner and set a timeline for the Tribunal to hear and decide on the appeals. The Court clarified that the Tribunal should not remand the matter solely on the ground of alleged violation of natural justice and allowed the petitioner to raise all legal contentions during the appeal hearing.

In conclusion, the High Court dismissed the writ petition challenging the order of the Commissioner of Customs, directing the petitioner to seek remedy through the Appellate Tribunal. The Court provided directions for expeditious disposal of the appeals and clarified the scope of legal contentions that could be raised during the appellate proceedings.