2021 (6) TMI 675 - HC - Customs

Duty Drawback - non realisation of export proceeds - violation of principles of natural justice - HELD THAT - This Court is of the considered opinion that even in such circumstances the grievances if at all exists the same can be exhausted by filing an appeal before the appellate authority under the provisions of the Customs Act. The introductory paragraph of the impugned order states that an appeal against the order lies with the Commissioner of Customs (Appeals), Custom House, 5 th floor, Chennai 600 001, under Section 128(1) of the Customs Act, 1962, within 60 days of communication of this order. Thus the petitioner is very much aware of the appellate remedy contemplated and such an appellate remedy is also informed to the petitioner even through the impugned order. However without exhausting the appellate remedy the present writ petition is filed by merely stating that the respondent has violated the principles of natural justice. Such legal grounds can be adjudicated by the appellate authority namely the Commissioner of Customs (Appeals) and therefore entertaining the writ petition at this juncture would deprive the litigant from availing the benefit of appellate remedy which is undoubtedly valuable and important. Petition dismissed.

Summary

Issues:
Challenge to order demanding Duty Drawback for non-realization of export proceeds on grounds of violation of principles of natural justice.

Analysis:
1. The petitioner challenged an order demanding Duty Drawback due to non-realization of export proceeds, alleging a violation of natural justice principles. The petitioner argued that they were not provided with a personal hearing to present their defense, and crucial documents were not considered by the respondent, rendering the order flawed and arbitrary.

2. The respondent, represented by the Senior Panel Counsel, contended that multiple opportunities were given to the petitioner for a personal hearing. Public notices were issued, and specific dates were scheduled for personal hearings, but the petitioner failed to respond or appear. The respondent emphasized that ample chances were provided for the petitioner to defend their case adequately.

3. The High Court noted that the petitioner could have pursued an appeal before the Commissioner of Customs (Appeals) under the Customs Act to address any grievances regarding the impugned order. The Court highlighted that the appellate remedy was clearly stated in the order, and bypassing it to file a writ petition alleging a violation of natural justice was not appropriate.

4. Referring to previous judgments, the Court reiterated the importance of exhausting statutory appeal remedies before approaching the High Court under Article 226 of the Constitution. It emphasized that the High Court should not intervene unless under extraordinary circumstances to prevent injustice, and that matters involving mixed questions of fact should be adjudicated through the appellate process.

5. The Court underscored that the statutory appeal process allows for a detailed examination of documents and evidence, a task not suitable for the High Court under Article 226. It emphasized the significance of appellate authorities in scrutinizing original orders and the need to follow legislative intentions by respecting the hierarchical adjudication process.

6. Emphasizing the need to trust institutional authorities and follow statutory appeal provisions, the Court dismissed the writ petition, directing the petitioner to exhaust the appellate remedy within 60 days. It highlighted that filing writ petitions without utilizing statutory appeal remedies burdens the High Court and may lead to delays, disadvantaging the parties involved.

7. The judgment reinforced the principle that statutory appeal remedies must be exhausted before seeking High Court intervention, ensuring proper adjudication of legal grounds and preventing unnecessary litigation. The Court's decision aimed to uphold the integrity of the appellate process and streamline legal proceedings for effective resolution of disputes.