2023 (11) TMI 490 - HC - Customs

Violation of principles of natural justice - adjudication of the show cause notice took more than 11 long years - Levy of penalty under Section 114(iii) of the Customs Act, 1962 - HELD THAT - This Court is of the considered opinion that prima facie the petitioners have been able to carve out an exception with regard to violation of principles of natural justice based on PARLE INTERNATIONAL LIMITED VERSUS UNION OF INDIA AND OTHERS 2020 (11) TMI 842 - BOMBAY HIGH COURT and M/S GODREJ SARA LEE LTD. VERSUS THE EXCISE AND TAXATION OFFICERCUM- ASSESSING AUTHORITY ORS. 2023 (2) TMI 64 - SUPREME COURT in as much as the adjudication of the show cause notice took more than 11 long years for which there appears to be no explanation. In fact, the writ petitions were dismissed in limine only on the ground of alternative remedy without examining the issue of violation of principles of natural justice. Review petition allowed.

Summary

Issues involved:
The issues involved in the judgment are the condonation of delay in filing the review petition and the question of admission based on the dismissal of the writ petition on the ground of availability of alternative remedy.

Condonation of Delay:
The review petition was filed challenging the judgment/order dated 09.01.2023, which was dismissed on the ground of statutory alternative remedy. The delay in filing the review petition was explained by the petitioners as being caused by the pendency of a Special Leave Petition (SLP) before the Apex Court. The delay was considered sufficiently explained, and the application for condonation of delay was allowed.

Question of Admission:
The writ petition filed by M/s Rama Phosphates Limited challenged an adjudication order imposing a penalty under the Customs Act, 1962. The petitioners contended that the dismissal of the writ petition on the ground of availability of alternative remedy was erroneous, citing exceptions recognized by the Hon'ble Apex Court. The issue of limitation under Section 28(9)(b) of the Customs Act was raised, emphasizing that the dismissal of the writ petition was contrary to established legal principles. The Apex Court granted liberty to file a review before the High Court, acknowledging errors in the impugned order and allowing withdrawal of the SLP with liberty to challenge the order in case of an adverse decision in the review. The Court found that the petitioners had been able to carve out an exception regarding the violation of principles of natural justice, as the adjudication process took an unreasonably long time without proper explanation. Consequently, the order dismissing the writ petition was set aside, and the review petition was allowed.

Conclusion:
The judgment allowed the review petition, setting aside the order dismissing the writ petition and all connected review petitions. The Court directed the listing of all petitions for hearing on admission and ordered the placement of a copy of the order in the record of the connected petitions.