2003 (10) TMI 172 - AT - Customs

Summary

Issues:
- Imposition of penalties under Section 112 of the Customs Act
- Lack of reasonable opportunity of defense
- Failure to serve notice or order to appellants in jail
- Violation of natural justice

Imposition of Penalties under Section 112 of the Customs Act:
The appeals in this case were against the penalties imposed by the Commissioner of Customs under Section 112 of the Customs Act. The impugned order was passed without providing the appellants with a reasonable opportunity of defense. It was highlighted that the show cause notice was sent to the village address of the appellants, despite them being in jail at the time due to criminal cases launched by the customs authorities. The main argument raised was the lack of proper service of notice or hearing notice to the appellants, as required by Section 153 of the Customs Act.

Lack of Reasonable Opportunity of Defense:
One of the key grounds for appeal was the failure to provide the appellants with a reasonable opportunity of defense. The appellants, who were in jail during the proceedings, did not receive any notice of the show cause or the adjudication hearings. The absence of any evidence suggesting proper service of notices raised concerns regarding the violation of natural justice and the appellants' right to defend themselves adequately.

Failure to Serve Notice or Order to Appellants in Jail:
The judgment emphasized the duty of the customs department to ensure that notices or orders are properly served to individuals in jail through the Jail Superintendent, as per Section 153 of the Customs Act. In this case, the appellants, who were still in jail, did not receive any notice despite their incarceration being known to the customs authorities. This failure to serve notices to individuals in jail was deemed a violation of natural justice and a reason for setting aside the impugned order.

Violation of Natural Justice:
The failure to serve notices or orders to the appellants in jail was considered a violation of natural justice. The judgment accepted the plea raised by the Counsel for the appellants regarding the lack of proper service of notices and set aside the impugned order in relation to the appellants. The Commissioner of Customs was directed to re-adjudicate the case concerning the appellants in accordance with the law and the principles of natural justice, ensuring that the relevant observations made in the judgment are taken into consideration. The appeals were allowed by way of remand for further proceedings.