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2024 (4) TMI 127 - HC - CustomsJurisdiction - proper officer to issue SCN - Valuation of imported goods - power tools and its parts and accessories - mis-declaration of value - HELD THAT - The view taken by the Division Bench of this Court in the case of LAXMI ORGANIC INDUSTRIES LTD VERSUS UNION OF INDIA, THROUGH ITS SECRETARY, DEPARTMENT OF REVENUE ORS. 2023 (12) TMI 1157 - BOMBAY HIGH COURT , needs to be followed in the present proceedings inasmuch as, in the present proceedings, the Show Cause Notice is dated 31st December 2020, which was issued during the COVID-19 Pandamic. For such reason, the Show Cause Notice could not be taken forward. In the meantime, the Supreme Court pronounced its decision in the case of M/S CANON INDIA PRIVATE LIMITED VERSUS COMMISSIONER OF CUSTOMS 2021 (3) TMI 384 - SUPREME COURT . What has been laid down by the Supreme Court in such decision is the law of the land under Article 141 of the Constitution of India. The adjudicating officer is thus bound by the law as laid down by the Supreme Court in the said decision. The Petitioners can certainly raise such plea placing reliance on the said decision of the Supreme Court, and in that case it would be incumbent for the adjudicating officer to consider the applicability of the said decision, and if so applicable, abide by the said decision in adjudicating the said Show Cause Notice dated 31st December 2020. The Petition is accordingly disposed of directing the Respondents to adjudicate the Show Cause Notice dated 31st December 2020 as expeditiously, as possible, and, in any event, within a period of six months from today. As the show cause notice is issued more than three years back, there cannot be any further delay in the adjudication of the same. Petition disposed off.
Issues Involved:
The issues involved in this case include the legality of the Show Cause Notice issued u/s 28(4) of the Customs Act, 1962, the authority of the officer issuing the notice, the appropriateness of the actions taken during the investigation, and the subsequent proceedings in response to the notice. Legality of Show Cause Notice: The Petitioners challenged the Show Cause Notice dated 31st December 2020, issued by Respondent No. 2 u/s 28(4) of the Customs Act, 1962. They contended that Respondent No. 2 was not the proper officer to issue the notice and that it was illegal. The Petitioners relied on the decision of the Supreme Court in the case of Canon India Pvt. Ltd. to support their argument. On the other hand, the Respondents argued that the challenge to the notice and its legality could be raised before the adjudicating officer, who could consider the grounds raised by the Petitioners. The Respondents cited a decision of the Division Bench of the High Court to support their position. Decision of the Court: After hearing both parties, the Court held that the Show Cause Notice dated 31st December 2020, issued during the COVID-19 pandemic, could not be taken forward. The Court noted that the Supreme Court's decision in the case of Canon India Pvt. Ltd. was binding as per Article 141 of the Constitution of India. The Court directed the Respondents to adjudicate the Show Cause Notice expeditiously, within six months from the date of the judgment. The Court emphasized that all contentions raised by the Petitioners were to be considered during the adjudication process. The Court disposed of the Petition accordingly, with no order as to costs. Final Relief Sought: The Petitioners sought various final reliefs, including a declaration that certain provisions of the Finance Act, 2022 were violative of Articles 14 and 19(1)(g) of the Constitution, a writ of Certiorari to quash the Show Cause Notice, and a writ of Prohibition to prevent further steps based on the notice. The Court did not address these specific reliefs in its judgment. Key Points: - Investigation initiated due to suspicion of customs duty evasion by mis-declaration of imported goods' value. - Seizure of documents, electronic records, and statements from Petitioners during search action. - Provisional release of seized goods upon execution of bank guarantees. - Impugned Show Cause Notice demanding duty, proposing confiscation of goods, and penalties. - Petitioners denied allegations in response to the Show Cause Notice. - Petitioners argued that the Show Cause Notice was not issued by the proper officer. - Court directed expeditious adjudication of the Show Cause Notice within six months. This summary provides a detailed overview of the legal judgment, focusing on the issues involved, the arguments presented by both parties, and the Court's decision regarding the Show Cause Notice and the subsequent adjudication process.
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