2024 (2) TMI 66 - HC - Customs

Validity of SCN issued by the respondent no.3, the Directorate of Revenue Intelligence, Mumbai Zonal Unit under Section 124 read with Section 28 of the Customs Act, 1962 - Penalty u/s 112(a) of the Customs Act - HELD THAT - Reliance placed in the recent order passed by this Court in the case of PARVEZ SHAIKH VERSUS THE UNION OF INDIA ORS 2024 (1) TMI 1085 - BOMBAY HIGH COURT wherein similar issues not only in regard to the adjudicating officer having jurisdiction to adjudicate the show cause notice in view of the decision of the Supreme Court in case of M/S CANON INDIA PRIVATE LIMITED VERSUS COMMISSIONER OF CUSTOMS 2021 (3) TMI 384 - SUPREME COURT but also on the delayed adjudication of show cause notice fell for consideration of this Court. This Court, in similar circumstances, had admitted the petition and had granted interim relief by way of stay to the show cause notice. It is opined that orders similar to the orders passed in the case of Parvez Shaikh need to be passed on the present petition - This petition be listed along with Writ Petition No.14770 of 2023 in case of Parvez Shaikh Vs. The Union of India Ors.

Summary

Issues involved: Challenge to show cause notice under Customs Act, 1962; Delayed adjudication of show cause notice.

Summary:
The High Court of Bombay heard a case challenging a show cause notice issued under the Customs Act, 1962. Initially, a penalty was imposed on the petitioner, which was later set aside by the Appellate Tribunal for de novo adjudication. Despite this, no action was taken by the respondents to adjudicate the show cause notice within the specified period. The petitioner argued that a recent Supreme Court decision held that the Directorate of Revenue Intelligence lacked jurisdiction to issue such notices. The petitioner contended that delayed adjudication of the notice would be illegal, citing relevant legal precedents.

The Court considered the submissions and found merit in the petitioner's arguments. It noted that the show cause notice issued by the Directorate of Revenue Intelligence would be subject to the Supreme Court's decision regarding jurisdiction. The Court also referenced a previous case where delayed adjudication of a show cause notice was deemed illegal. Therefore, the Court decided to stay the impugned show cause notice pending further proceedings, allowing the respondents to file a reply affidavit. The Court indicated that similar orders to those in a previous case would be passed in this petition, emphasizing the need for timely resolution of the matter.