2021 (12) TMI 796 - HC - Customs

100% EOU - private bonded warehouse license - appellant did not export and failed to fulfill the export obligation - HELD THAT - It is an admitted fact that the appellant had challenged the show cause notice issued to it before the appellate authority but the same was filed not within the time prescribed under the Act. Therefore, the appellate authority did not go into the merits of the case and dismissed the same on the ground of limitation. Since the said order has attained finality before the apex court, the appellant cannot reopen the merits of the case again before this court. Though the learned Single Judge has not entertained the Writ Petition, he had granted instalment facility to the appellant to discharge the liability in 12 monthly instalments. The counsel for the appellant was not in a position to submit before this court whether the appellant has availed of the instalment facility granted. The learned Judge has rightly dismissed the Writ Petition without going into the merits as the same has become final at the hands of the appellate authority confirmed by the order of the apex court. Even though the learned Single Judge has not entertained the Writ Petition, the appellant was given instalment facility to wipe of the liability. Appeal dismissed.

Summary

Issues:
Challenge to notice of demand dated 2.1.2007 for customs duty - Appeal dismissed on grounds of delay - Instalment facility granted by Single Judge - Challenge to Single Judge's decision on merits.

Analysis:
The appellant, a hundred percent export unit, faced a demand notice for customs duty due to failure to fulfill export obligations after importing capital goods eligible for duty exemption. The appellant's appeal against the notice was dismissed by the appellate authority and subsequent appeals were also unsuccessful. The Single Judge did not delve into the merits but granted an instalment facility for payment. The Writ Appeal challenges the Single Judge's decision not to consider the merits of the case.

The appellate authority dismissed the appellant's appeal due to a delay in filing, leading to a final decision not examining the case's merits. Since the matter reached the apex court, reopening the case's merits before the current court is precluded. Despite the Single Judge's decision not to entertain the Writ Petition, an instalment facility was provided, but the appellant's utilization of this facility remains unclear.

Upon review, the High Court found that the Single Judge correctly dismissed the Writ Petition without delving into the case's merits due to finality at the appellate level and apex court. The decision to grant instalment facility was upheld, and no interference was deemed necessary. Consequently, the Writ Appeal challenging the Single Judge's decision was dismissed, affirming the judgment.