2024 (10) TMI 1077 - HC - Customs

Levy of penalty u/s 117 of the Customs Act - petitioner was denied a reasonable opportunity of being heard - Violation of principles of natural justice - HELD THAT - The petitioner has placed on record the communications of 21-12-2023 and 1-1-2024 requesting for an adjournment of the proposed hearing. In fact, by communication dated 1-1-2024, through his counsel, the petitioner requested that the hearing be scheduled on any date except 5-1-2024 in the post noon session. The impugned order was issued on 5-1-2024. Undoubtedly, the petitioner was not provided a reasonable opportunity. In addition, on examining Section 117 of the Customs Act, it is found that the sum of Rs. 4,00,000/- is the ceiling with regard to imposition of penalty, whereas, in the impugned order, a penalty of Rs. 5,00,000/- was imposed under Section 117. This is clearly unsustainable. For reasons set out above, the impugned order is quashed insofar as it imposes a penalty of Rs. 5,00,000/- on the petitioner - the matter is remanded for reconsideration - petition disposed off by way of remand.

Summary

The petitioner challenged an Order-in-Original imposing a penalty of Rs. 5,00,000 under Section 117 of the Customs Act. The High Court found that the petitioner was not given a reasonable opportunity to be heard and that the penalty exceeded the maximum limit of Rs. 4,00,000. The impugned order was quashed, and the matter was remanded for reconsideration within six weeks. The writ petition was disposed of with no order as to costs.