2023 (10) TMI 1434 - HC - Customs

Challenge to SCN issued by the Principal Additional Director General of the Directorate of Revenue Intelligence under Section 28 read with Section 124 of the Customs Act, 1962 - the respondents would be ad idem to contend that on similar issues the proceedings are already admitted by this Court and are pending, hence, similar orders can be passed on the present proceedings - HELD THAT - As and by way of ad-interim relief, the impugned orders dated 4 September 2023 stayed, however, liberty to the respondents to make an application for vacating the said order in the event the respondents are of the opinion that the same ought not to be continued and / or after the decision of the Supreme Court in the pending Review / Writ Petition in the case of Canon India Private Ltd. 2022 (8) TMI 888 - SC ORDER .

Summary

Issues:
Challenge to show cause notice issued under Customs Act, 1962.

Analysis:
The judgment involves a challenge to the show cause notice issued by the Principal Additional Director General of the Directorate of Revenue Intelligence under Section 28 read with Section 124 of the Customs Act, 1962. The petitioner argued that the impugned orders passed on such show cause notices are illegal and without jurisdiction, citing the decision of the Supreme Court in Canon India Private Limited V/s. Commissioner of Customs AIR 2021 SC 1699. The petitioner referred to previous orders passed by the Bombay High Court in cases such as Heranba Industries Ltd. Vs. The Union of India & Ors. and Elite Aromas Vs. Union of India, where similar issues were admitted for adjudication based on the Supreme Court's decision. The court acknowledged the similarity of issues and stayed the impugned orders pending the final decision of the Supreme Court. The respondents agreed that similar orders could be passed on the present proceedings, leading to an interim stay on the impugned orders dated 4 September 2023.

The court noted that a review petition arising from the Supreme Court's decision in Canon India Private Limited was pending before the Supreme Court, along with an amendment brought by the Finance Act, 2022, which was also under challenge. The court referred to an order passed in Idea Cellular Ltd. V/s. Union of India, where common legal issues were observed, similar to those in the present case. The court decided to adjudicate the present petitions finally, with the parties agreeing to complete the pleadings. An ad-interim relief was granted, staying the impugned order dated 23rd February 2023, with liberty given to the respondents to apply for vacating the order after the Supreme Court's decision in the pending Review/Writ Petition in the case of Canon India Private Limited. The court kept all contentions of the parties open for further consideration.

Overall, the judgment revolves around the challenge to the show cause notice issued under the Customs Act, 1962, with the petitioner relying on the Supreme Court's decision in Canon India Private Limited. The court considered the similarity of legal issues in previous cases and decided to grant an interim stay on the impugned orders, awaiting the final decision of the Supreme Court. The parties agreed to complete the pleadings, and all contentions were kept open for future proceedings.