2005 (12) TMI 102 - HC - Customs

Summary

Issues:
1. Allegations of under-invoicing in the import of printing machineries.
2. Repeated rejection of requests for information under Section 108 of the Customs Act.
3. Legal implications of the impugned orders on the petitioners' defense in the show cause notices.

Analysis:

1. Allegations of under-invoicing: The petitioners, a company engaged in printing and publishing newspapers, faced show cause notices in 1987 alleging under-invoicing in the import of printing machineries from the UK. The petitioners contended that the notices were motivated and mala fide, mentioning other newspapers that imported similar machinery without under-invoicing. The Customs department rejected the petitioners' application under Section 108 of the Customs Act, leading to a series of litigations.

2. Rejection of requests for information: The petitioners repeatedly sought information under Section 108 to establish their innocence, citing specific details of other newspaper establishments and the availability of relevant documents. Despite court directions to decide on the application's merits, the respondents continued to reject the requests, leading to further petitions and amendments. The respondents' refusal to provide crucial information raised concerns of fairness and prejudice to the petitioners' defense.

3. Legal implications on defense: The High Court emphasized the importance of fairness and natural justice in legal proceedings. Considering the prolonged nature of the case and the availability of crucial documents with the respondents, the Court held that proceeding with the show cause notices without providing necessary information would prejudice the petitioners' defense. As a result, the Court allowed the petition, setting aside the impugned order and quashing the show cause notices to prevent unfairness and uphold the petitioners' right to a proper defense.

This detailed analysis of the judgment highlights the issues surrounding allegations of under-invoicing, repeated rejection of requests for information under Section 108, and the legal implications on the petitioners' defense, ultimately leading to the Court's decision to grant relief to the petitioners.