2021 (9) TMI 608 - HC - Customs

Maintainability of petition - SCN issued without prejudice to any other action that may be taken against the noticee and the petitioner was provided with an opportunity - petitioner instead of defending the case, has chosen to file the present writ petitions - HELD THAT - No writ is entertainable against the show-cause notice in a routine manner. A writ against the show-cause notice may be entertained, if such notices are issued by an incompetent Authority, having no jurisdiction directly in violation of any of the statutory provisions. If an allegation of malafides are raised, then also a writ may be entertained, provided the authority against whom such an allegation of malafides are raised, if impleaded as a party respondent in his personal capacity in the writ proceedings - the noticee is bound to respond to the show-cause notice and the Authority Competent is bound to adjudicate the merits in accordance with law and take a decision and pass orders. The petitioner made a submission that the petitioner has paid the entire Customs Duty including the interest. In view of the fact that the petitioner has already deposited the entire demand of Customs of Duty, the case is to be adjudicated on merits and in accordance with law. The petitioner is at liberty to submit its objections, defense statements, documents, evidences etc., to the respondents, within a period of four weeks from the date of receipt of a copy of this order - Petition disposed off.

Summary

Issues:
Challenging show-cause notices issued in proceedings dated 18.11.2016.

Analysis:
The petitioner, a Company engaged in manufacturing various products, filed writ petitions challenging show-cause notices. The notices were issued providing an opportunity to respond, but instead of defending the case, the petitioner chose to file the writ petitions. The grounds raised in the petitions mainly relate to disputed facts and legal grounds. The High Court clarified that it cannot extensively adjudicate disputed facts in a writ proceeding under Article 226 of the Constitution of India.

The Court emphasized that writs against show-cause notices are not entertained routinely. Such writs may only be entertained if the notices are issued by an incompetent authority or in violation of statutory provisions. Allegations of malafides may also warrant a writ, but only if the authority accused of malafides is made a party respondent in their personal capacity. Otherwise, the noticee must respond to the show-cause notice, and the competent authority must adjudicate the matter in accordance with the law.

The petitioner's counsel informed the Court that the petitioner had paid the entire Customs Duty along with interest. Considering this, the Court directed the petitioner to submit objections, defense statements, documents, and evidence to the respondents within four weeks. The Competent Authority was instructed to adjudicate the objections on merits and pass appropriate orders following due procedures.

Consequently, both writ petitions were disposed of with the above directions, and no costs were awarded. The connected miscellaneous petitions were also closed as a result of the judgment.