2020 (12) TMI 881 - HC - Customs

Levy of penalty under Section 112 of the Customs Act 1962 - import of Fully Fashioned High Speed Knitting Machine - alleged acts of omission and commission resulting in evasion of the customs duty on the imported goods and thereby rendering those goods liable to confiscation - Export Promotion Capital Goods under the scheme of Foreign Trade Policy - HELD THAT - This writ application is disposed with liberty to the writ applicants to put forward their case in the best possible manner before the adjudicating authority. The adjudicating authority may consider the submissions that may be canvassed before him and take an appropriate decision in accordance with law.

Summary

Issues:
Challenge to show cause notices and demand notices issued by the Directorate of Revenue Intelligence regarding evasion of customs duty on imported goods.

Analysis:
The writ application challenged show cause notices and demand notices issued by the Directorate of Revenue Intelligence concerning the evasion of customs duty on imported goods. The writ applicants were called to show cause for penalty imposition under Section 112 of the Customs Act, 1962, due to alleged acts resulting in customs duty evasion and making the goods liable for confiscation under Section 111 of the Act. The specific issue in the case pertained to the import of "Fully Fashioned High Speed Knitting Machine" under the Export Promotion Capital Goods scheme of the Foreign Trade Policy.

The learned counsel for the writ applicants raised various contentions challenging the legality and validity of the notices. The Additional Solicitor General of India also presented detailed submissions to counter the arguments put forth by the counsel for the writ applicants.

The Court decided not to entertain the writ application. The counsel for the writ applicants requested to withdraw the application and present all arguments before the adjudicating authority. The Court disposed of the application, granting liberty to the writ applicants to present their case effectively before the adjudicating authority. The adjudicating authority was instructed to consider all submissions and make a decision in accordance with the law. It was clarified that the High Court's decision not to entertain the application should not influence the adjudicating authority's final decision. The Court's decision was based on the timeline of the show cause notices issued in June 2019 and the ongoing adjudication process.

In conclusion, the writ application was disposed of, allowing the writ applicants to present their case before the adjudicating authority, which was directed to make a decision based on the submissions without being influenced by the High Court's decision not to entertain the application.