2024 (8) TMI 620 - HC - Customs

Challenge to the 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 - HELD THAT - As and by way of ad-interim relief, the impugned order dated 5-12-2023 is stayed, however, liberty granted 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 COMMISSIONER OF CUSTOMS VERSUS CANON INDIA PVT. LTD. 2022 (8) TMI 888 - SC ORDER . Respondents waive service.

Summary

Issues:
Challenge to show cause notice under Customs Act, 1962 based on Supreme Court decision.

Analysis:
The judgment by the High Court of Bombay involved the challenge to a show cause notice issued under Section 28 read with Section 124 of the Customs Act, 1962. The petitioner argued that the impugned orders based on the show cause notices were illegal and lacked jurisdiction, citing the decision of the Supreme Court in Canon India Private Limited v. Commissioner of Customs [AIR 2021 SC 1699]. The petitioner referred to previous orders by the High Court in cases such as Heranba Industries Ltd. v. Union of India, Elite Aromas v. Union of India, Viral Kanubhai Mehta v. Union of India, and Indu Shekar & Ors. v. Union of India, where similar challenges were admitted by the Court based on the Supreme Court's decision in Canon India Private Limited.

In a detailed analysis, the Court noted the arguments presented by both parties and acknowledged that similar issues were already admitted by the Court and were pending. The Court decided to adjudicate the present petitions, with the agreement of both counsels, and issued a rule with respondents waiving service. The interim order was to continue until the final decision, with liberty given to parties to move the Court after the Supreme Court's proceedings. The Court also directed the parties to complete pleadings on the petitions.

Furthermore, the Court granted ad-interim relief by staying the impugned orders, with liberty for respondents to apply for vacating the order if deemed necessary, especially after the Supreme Court's decision in the pending Review/Writ Petition related to Canon India Private Limited. All contentions of the parties were kept open for further consideration and discussion, ensuring a fair and comprehensive legal process. The judgment highlighted the importance of legal precedents set by the Supreme Court and the need for thorough examination of jurisdictional issues under the Customs Act, 1962.