2022 (3) TMI 759 - HC - Customs

Service of SCN - Recovery of duty drawback - export proceeds pertaining to the consignment exported by several shipments have not been realised - HELD THAT - Since the show cause notice and the notice for personal hearing has not been received by the petitioner either through electronic mode or to the registered address of the petitioner, and it has been uploaded in the web portal and the petitioner has already closed the business before the show cause notices are said to have been issued through on-line mode ie., web portal, this Court feels that there is some justification on the part of the petitioner to claim that the notices have not been effectively issued or served on the petitioner. The impugned order is set aside and the matter is remitted back to the respondent for reconsideration - While reconsidering the same, the respondent shall issue a fresh show cause notice to the petitioner in the address given in the present writ petition by giving a specific date for personal hearing also - petition allowed by way of remand.

Summary

Issues:
1. Challenge to Order-in-Original No.85459/2021 dated 27.03.2021 for recovery of duty drawback amount.
2. Allegation of non-receipt of show cause notice and lack of personal hearing.
3. Validity of notice uploaded on web portal without physical service.
4. Remedies sought by the petitioner against the impugned order.

Analysis:
1. The petitioner challenged Order-in-Original No.85459/2021 seeking recovery of duty drawback amount for exports from 2004 to 2007. Revenue alleged non-realization of export proceeds and issued a show cause notice, which the petitioner claimed not to have received due to business closure in 2011.
2. The Revenue proceeded ex parte and passed the order dated 27.03.2021 to recover the duty drawback. The petitioner contended non-receipt of show cause notice affected the validity of the order. The petitioner's counsel argued that lack of notice vitiated the order.
3. The Senior Standing Counsel for Revenue defended the notice's validity, stating that uploading on the web portal sufficed as per rules. However, considering the petitioner's business closure and non-receipt of notices, the counsel suggested granting another opportunity for a personal hearing and submission of supporting documents.
4. After evaluating both parties' submissions and the records, the Court found merit in the petitioner's claim of non-effective notice service. Consequently, the Court set aside the impugned order and remitted the matter to the respondent for reconsideration. The Court directed the issuance of a fresh show cause notice with a specific date for a personal hearing, allowing the petitioner to defend the case. Failure to appear or respond would empower the Revenue to proceed based on available records.

This detailed analysis of the judgment highlights the issues raised, arguments presented, and the Court's decision, ensuring a comprehensive understanding of the legal proceedings and outcomes.