2022 (7) TMI 932 - HC - Customs

Seeking forebearance of respondent from adjudicating the show cause notice - seeking to direct the respondent to release the goods for Re-Export on execution of Bond for the full value of the goods - HELD THAT - It is seen that the department following the procedure, issued show cause notice, which was received by the petitioner through E-mail. Initially, appending documents not sent, after receipt of reply dated 19.07.2022, documents were appended to the E-mail, which was followed by a hard copy, sent through speed post. The petitioner filed a contempt petition against the officials. In the meanwhile, the officials challenged the order of the learned Single Judge in W.A.(MD).No.556 of 2022 2022 (6) TMI 1189 - MADRAS HIGH COURT , which got dismissed. Hence, the respondent has issued show cause notice and given option for personal hearing, as he was constrained to conclude the same, in view of the order passed in W.P(MD)No.8916 of 2022, dated 28.04.2022 2022 (4) TMI 1413 - MADRAS HIGH COURT . It is only a classification issue, which is primarily proceeds based on the Notification No.20/2015, dated 25.07.2018. Now, this Notification has been stayed by the High Court of Karnataka in W.P.No.2898 of 2022, by order dated 10.02.2022 (following the order in W.P. No. 1329/2022 dated 8.2.2022, which is passed in following the order of Apex court in 2015 (11) TMI 80 - SUPREME COURT Be that as it may, now, the department has no objection to re-export the imported consignment of the petitioner. The only requirement for the department is that, the petitioner to execute a bond and to participate in the proceedings, for the show cause notice and enquiry. The issue can be decided on its own merits. The petitioner has to participate in all the proceedings without any delay. This Court directs the respondent to release the goods for Re-Export and the petitioner is directed to execute a bond for the full value of the goods, within a period of one week from 18.07.2022. The re-export order to be passed without delay, preferably within one week, of course, after complying the procedures of the Customs - petition disposed off.

Summary

Issues:
- Writ of mandamus sought to prevent respondent from adjudicating show cause notice
- Release of goods for re-export on execution of bond
- Violation of principles of natural justice in personal hearing process

Analysis:
1. The petitioner filed a Writ Petition seeking a writ of mandamus to prevent the respondent from adjudicating a show cause notice issued under various sections of the Customs Act. The petitioner imported Betelnut products and sought permission for re-export due to perishability. Previous court orders directed the respondent to take action within specified timelines, leading to subsequent contempt petitions and appeals.

2. The respondent challenged the court order and issued a show cause notice primarily based on a classification issue regarding the imported goods. The notice indicated potential ex-parte proceedings if no cause was shown within a specified time. The petitioner faced challenges in accessing documents and participating in personal hearings, alleging a violation of natural justice principles.

3. The respondent argued that timely completion of adjudication was crucial, as directed by the court, leading to immediate steps taken to issue the show cause notice and arrange personal hearings. Despite multiple notices and opportunities, the petitioner failed to respond, raising concerns about completing the process within the court-mandated timeline.

4. The court observed that the show cause notice was received by the petitioner through email, followed by hard copies and CD attachments. The petitioner's actions, including filing a contempt petition and challenging court orders, impacted the timely completion of the adjudication process. The classification issue was highlighted, considering a stay on a relevant notification by the High Court of Karnataka.

5. Ultimately, the court directed the respondent to release the goods for re-export upon the petitioner's execution of a bond for the full value of the goods. Emphasis was placed on the petitioner's active participation in all proceedings without delay to ensure a fair resolution of the classification issue. The court set a deadline for bond execution and re-export order issuance, emphasizing compliance with Customs procedures.

6. The judgment concluded by disposing of the Writ Petition without costs, with directions for the release of goods for re-export and the petitioner's compliance with bond execution within a specified timeframe. The resolution aimed to address the classification issue and ensure procedural fairness in the adjudication process.