2019 (1) TMI 10 - HC - Customs

Service of SCN - though it is stated that the show cause notice was issued under Section 124 of the Customs Act, 1962, a file number has been given, but there was no averment or proof of service of such show cause notice on the assessee - Held that - Tribunal had given sufficient opportunity to the Department including the Directorate of Revenue Intelligence to produce proof that the show cause notice was served on the assessee. The Tribunal, in paragraph 3 of the impugned order, recorded the submission of the authorized representative of the Department appeared before the Tribunal that no show cause notice has been issued to the respondent assessee in the subject proceedings and this submission was made after due instructions were given and after making enquiries with the Department. We cannot exercise our power under Section 130 of the Customs Act, 1962 to re-appreciate the factual finding finally decided by the Tribunal, the last Authority, which can appreciate the factual matrix - appeal dismissed.

Summary

Issues:
1. Challenge to the order passed by the Customs, Excise and Service Tax Appellate Tribunal
2. Substantial questions of law raised in the appeal
3. Service of show cause notice on the assessee before adjudication

Analysis:
The High Court of Madras heard an appeal filed by the Revenue challenging an order by the Customs, Excise and Service Tax Appellate Tribunal. The appeal raised substantial questions of law regarding the issuance of a show cause notice and the grant of a personal hearing to the petitioner. The main issue for consideration was whether the show cause notice was served on the assessee before the adjudication process leading to the Order-in-Original dated 24.2.2014. The appellant claimed that the show cause notice was issued under Section 124 of the Customs Act, 1962, but failed to provide proof of service to the assessee.

During the proceedings, the Tribunal requested the Department, including the Directorate of Revenue Intelligence, to produce evidence of the show cause notice being served on the assessee. The Tribunal noted that the Department's authorized representative confirmed that no show cause notice had been issued to the respondent-assessee. The High Court observed that as the Tribunal, being the final authority, had already made a factual finding on this matter, the Court could not re-evaluate the evidence under Section 130 of the Customs Act, 1962. Consequently, the Court found no substantial question of law to consider in the appeal and dismissed the civil miscellaneous appeal without costs.

In conclusion, the High Court upheld the Tribunal's decision, emphasizing the importance of proper service of show cause notices in legal proceedings. The judgment highlights the significance of adhering to procedural requirements and ensuring the principles of natural justice are followed in administrative and legal processes.