2019 (12) TMI 74 - SC - Customs

Jurisdiction - Competence of concerned authority to proceed in the matter in the context of Article 24 of the Appendix D to the Treaty dated 30.08.2009 between the Republic of India and the Association of South East Asia Countries (ASEAN) - HELD THAT - The issue raised by the appellant(s) regarding the efficacy of Article 24 of the Appendix D to the Treaty cannot be adjudicated by the competent authority. That issue needs to be addressed by the High Court in the Writ Petition(s) filed by the concerned appellant(s). The parties are relegated before the High Court by restoring the concerned writ petition(s) to their original number(s), to be decided on their own merits in accordance with law - appeal allowed.

Summary

Issues involved:
Challenge to show cause-cum-demand notices under Section 28 of the Customs Act, 1962; Competence of the concerned authority in the context of Article 24 of the Appendix 'D' to the Treaty between India and ASEAN; Disposal of writ petitions by the High Court without addressing the foundational issue raised by the appellant(s).

Analysis:
The Supreme Court granted leave to appeal against the judgment of the High Court concerning writ petitions challenging show cause-cum-demand notices issued by Customs Officers under Section 28 of the Customs Act, 1962 for various ports, including Mumbai and Delhi. The notices were challenged on both merit and the competence of the authority to proceed under Article 24 of the Appendix 'D' to the India-ASEAN Treaty. The High Court acknowledged the competency issue but disposed of the petitions, suggesting an alternative remedy without addressing the foundational issue raised by the appellant(s).

Regarding the challenge raised by the appellant(s) on the efficacy of Article 24 of the Appendix 'D' to the Treaty, the Supreme Court emphasized that this issue cannot be adjudicated by the competent authority but must be addressed by the High Court in the writ petitions. Consequently, the Supreme Court set aside the High Court's judgment and order, restoring the writ petitions to their original status for a decision on their merits in accordance with the law, leaving all questions open for consideration.

The Supreme Court's decision reiterates the importance of addressing foundational issues raised in writ petitions, such as the competence of the authority under specific treaty provisions, before resorting to alternative remedies. By reiterating the need for a thorough examination of such issues by the High Court, the Supreme Court ensures that matters are decided on their own merits and in compliance with legal procedures. The disposal of the appeal and pending applications without costs signifies the resolution of the immediate legal dispute, emphasizing the need for a comprehensive examination of legal issues in future proceedings.