2022 (11) TMI 515 - HC - Customs

Violation of principles of natural justice - seeking opportunity of cross-examination of Officers and Directors - reliability of document authored by some of its directors and employees from Malaysia - HELD THAT - The Appellant cannot force the department to issue summons to its directors/employees to scuttle the adjudication proceedings. The question of cross examination of a witness will arise only where statements of such witnesses are relied upon in the show cause notices issued - That apart, under the Customs Act, 1962, strict rules of evidence under the provisions of Indian Evidence Act, 1872, do not strictly apply to quasi judicial proceedings namely before the Adjudicating Authority under the Act. Finding of facts and conclusion thereon is to be determined on the principle of preponderance of probability. If the department makes out a case based on the aforesaid well settled principal of law of preponderance of probability, the proposal in the show cause notices can be confirmed. Reliance placed on the Provisions of Section 28(9) of the Customs Act, 1962, is also misplaced. The time line prescribed under the aforesaid provision is elastic and not rigid. It cannot be invoked by the appellant to assail the continuance of the show cause notice proceeding dated 27.01.2005 as it is based on the decision of the learned Single Judge in W.P.No.18918 of 2000 vide order dated 24.06.2005. The hands of the adjudicating authority cannot be tied and shackled. If any error is committed by an adjudicating authority while passing it is always open for an assessee to assail the same in an appellate proceeding under the Act. The appellant has not made out any case for interfering with the order of the learned Single Judge of this Court - Appeal dismissed.

Summary

Issues Involved:
1. Writ appeal against an order dated 16.09.2021 passed by a learned single Judge.
2. Relief sought in the writ petition filed by the appellant.
3. Modification and review petitions filed by the respondent.
4. Consideration of due process of law and principles of natural justice.
5. Cross-examination of officers and directors in show cause proceedings.
6. Interpretation of Section 28(9) of the Customs Act, 1962.
7. Applicability of previous court judgments to the present case.
8. Review of the order dated 29.09.2008.
9. Delay in completion of adjudication proceedings.
10. Arguments regarding the reliance on documents authored by directors and employees.
11. The role of the adjudicating authority in quasi-judicial proceedings.
12. The elasticity of timelines under Section 28(9) of the Customs Act, 1962.

Analysis:
1. The writ appeal was filed against an order dated 16.09.2021 by a learned single Judge, concerning a writ petition filed by the appellant seeking a writ of mandamus for completion of adjudication proceedings following due process of law and principles of natural justice.
2. The respondent filed modification and review petitions seeking extensions and modifications to the previous order, emphasizing the completion of adjudication proceedings within a specified timeframe.
3. The court emphasized the importance of independently considering objections and explanations submitted by the noticee in show cause proceedings, avoiding unnecessary implications from previous judgments not directly applicable to the case.
4. The appellant argued for the cross-examination of officers and directors involved in the case, while the respondent highlighted the reliance on documents authored by them.
5. Interpretation of Section 28(9) of the Customs Act, 1962 was discussed, focusing on the timeline for determining duty amounts and interest, with the appellant questioning the continuation of proceedings beyond the prescribed limitation period.
6. The court addressed the delay in completing the assessment, the necessity of following due process, and the appellant's attempt to force the department to summon its own directors/employees for cross-examination.
7. It was clarified that strict rules of evidence do not strictly apply to quasi-judicial proceedings under the Customs Act, and decisions are based on the preponderance of probability.
8. The court dismissed the writ appeal, stating that the appellant failed to demonstrate grounds for interfering with the learned single Judge's order, emphasizing the need for the respondent to adjudicate the show cause notices within a specified timeframe.

This comprehensive analysis covers the various issues involved in the legal judgment, providing a detailed understanding of the court's decision and the arguments presented by both parties.