2025 (2) TMI 280 - HC - Customs

Maintainability of petition - availability of alternative remedy - Challenge to SCN - delay in adjudication and the procedural lapses - grievance of the Petitioner is that though the SCN is of 2019 a proper personal hearing was conducted only on 25th September 2024 - violation of principles of natural justice - HELD THAT - The grounds which have been raised in the present writ petition can always be raised before the Appellate Authority as per the Act. The Court is of the opinion that this is not an extraordinary case for exercise of writ jurisdiction by this Court. It is however clarified that none of the questions of law raised have been gone into by the Court. Petition dismissed.

ISSUES PRESENTED and CONSIDERED

The primary issues considered in this judgment are:

Whether the delay in adjudication and the procedural lapses, such as not providing the Show Cause Notice (SCN) and Relied Upon Documents (RUDs) timely, justify setting aside the impugned order.
Whether the lack of opportunity to file a reply and conduct cross-examination constitutes a violation of the principles of natural justice.
Whether the writ petition is maintainable despite the availability of an alternative appellate remedy under Section 129 of the Customs Act, 1962.

ISSUE-WISE DETAILED ANALYSIS

Delay in Adjudication and Procedural Lapses

Relevant Legal Framework and Precedents: The Customs Act, 1962, provides a framework for issuing SCNs and conducting hearings. It mandates timely communication of SCNs and RUDs to ensure fair adjudication.
Court's Interpretation and Reasoning: The Court acknowledged the Petitioner's grievance regarding the delay and procedural lapses. However, it emphasized the availability of an appellate remedy to address these issues.
Key Evidence and Findings: The SCN was issued in 2019, but the personal hearing was conducted only in September 2024. The Petitioner claimed not to have received the SCN and RUDs until the hearing.
Application of Law to Facts: The Court noted that the Petitioner had the opportunity to file submissions within five weeks post-hearing but failed to do so.
Treatment of Competing Arguments: The Respondent argued that adequate opportunity was provided, which the Petitioner did not utilize. The Court found this argument persuasive, given the Petitioner's inaction.
Conclusions: The Court concluded that procedural lapses could be addressed in an appeal, and thus, the writ petition was not the appropriate remedy.

Lack of Opportunity for Reply and Cross-Examination

Relevant Legal Framework and Precedents: Principles of natural justice require that parties be given a fair opportunity to present their case, including filing replies and cross-examining witnesses.
Court's Interpretation and Reasoning: The Court observed that the Petitioner had the chance to seek remedies through the appellate process where these grievances could be addressed.
Key Evidence and Findings: The Petitioner submitted letters requesting cross-examination, which were not considered in the impugned order.
Application of Law to Facts: The Court noted that the Petitioner's failure to file detailed submissions weakened the argument of being denied a fair opportunity.
Treatment of Competing Arguments: The Respondent maintained that procedural fairness was observed, and the Petitioner had remedies available through appeal.
Conclusions: The Court held that the issues of procedural fairness could be effectively addressed in the appellate forum.

Maintainability of Writ Petition

Relevant Legal Framework and Precedents: Article 226 of the Constitution allows for writ petitions, but courts generally require exhaustion of alternative remedies unless exceptional circumstances exist.
Court's Interpretation and Reasoning: The Court determined that the availability of an appellate remedy under Section 129 of the Customs Act was adequate and that no extraordinary circumstances justified bypassing this remedy.
Key Evidence and Findings: The Petitioner argued that pursuing an appeal would be futile, but the Court found this argument speculative.
Application of Law to Facts: The Court emphasized the importance of following the statutory appeal process before seeking judicial intervention.
Treatment of Competing Arguments: The Respondent argued that the writ petition was premature, and the Court agreed, noting the Petitioner's failure to exhaust available remedies.
Conclusions: The Court dismissed the writ petition, directing the Petitioner to pursue the appellate remedy.

SIGNIFICANT HOLDINGS

Core Principles Established: The judgment reinforced the principle that writ jurisdiction should not be invoked when an effective alternative remedy is available, barring exceptional circumstances.
Final Determinations on Each Issue: The Court dismissed the writ petition, granting the Petitioner liberty to approach the appellate forum and raise all relevant grounds. The Court clarified that it did not adjudicate on the merits of the legal questions raised, leaving all contentions open for consideration by the appellate authority.

The Court granted the Petitioner an additional 30 days to approach the appellate forum, considering the time spent in the writ proceedings. All pending applications were also disposed of accordingly.

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