2022 (6) TMI 1231 - HC - Customs

Violation of principles of natural justice - delay in adjudication of show cause notices should be attributed to petitioner or not - HELD THAT - The petitioner having filed response to the show cause notices, the adjudicating authority should be given an opportunity to conclude the proceedings. Should petitioner wish to make any further reply to the show cause notice, the same shall be filed within one week from today - the adjudicating authority will adjudicate on the show cause notices and pass a detailed and well reasoned order within six weeks from today. Petition disposed off.

Summary

Issues:
Impugning six show cause notices for delay in adjudication and violation of natural justice principles.

Detailed Analysis:

1. Delay in Adjudication: The petitioner challenged six show cause notices due to delays in adjudication, arguing that the delays were caused by the respondents without informing the petitioner. The petitioner contended that such prolonged delays, spanning over a decade in most cases, undermine the purpose of issuing show cause notices. It was emphasized that the adjudication process should be concluded within a reasonable period to achieve finality. The delay was argued to be a violation of procedural fairness and the principles of natural justice, rendering any action taken on such delayed notices unsustainable.

2. Legal Precedents: The petitioner cited legal precedents, including judgments like Parle International Ltd. vs. Union of India and Sushitex Exports India Ltd. vs. The Union of India, where courts held that adjudication proceedings cannot proceed due to delays in show cause notice adjudication. The court acknowledged these precedents and considered them during the case.

3. Respondent's Submission: The respondent sought time to complete the proceedings and assured that the show cause notices would be adjudicated within six weeks. The respondent agreed to pass a detailed order considering all submissions made by the petitioner. It was stated that any objections regarding delayed adjudication and violation of natural justice principles could also be raised before the adjudicating authority.

4. Court's Decision: The court decided that the adjudicating authority should be given an opportunity to conclude the proceedings, considering that the petitioner had responded to the show cause notices. The court issued specific directions for the adjudication process, including timelines for filing replies, conducting personal hearings, and passing a detailed order. The court emphasized that the order should address all submissions made by the petitioner and provide reasons for the conclusions reached.

5. Final Directions: The court disposed of the petition with directions for the petitioner to file any further replies within a week, and for the adjudicating authority to pass a well-reasoned order within six weeks. The court mandated a personal hearing for the petitioner, advanced notice of personal hearing, and provision of any orders or pronouncements relied upon. The petitioner was allowed to submit written arguments post the personal hearing, with the final order expected to be served by a specified date.

6. Grounds for Petitioner: The court clarified that the petitioner could raise grounds similar to those in the judgments cited during the proceedings, emphasizing that the delay in adjudication of show cause notices could be considered fatal to the notices. The court concluded the petition without imposing any costs on either party.