2023 (11) TMI 727 - HC - Customs

Validity of Show Cause Notice (SCN) Jurisdiction of Joint Commissioner of Customs (Port) to issue SCN u/s 124 of the Customs Act, 1962 - Item imported is free or not - HELD THAT - The petitioner should have responded to the aforesaid show cause notice by giving reply and make out a case before the adjudicating authority. At this stage, no relief granted to the petitioner in this writ petition except extending the time to give reply to the aforesaid impugned show cause notice for a period of two weeks from date and directing the respondent adjudicating authority concerned to consider and dispose of such reply to be filed by the petitioner on the issue of the jurisdiction to issue impugned show cause notice, on the basis of notification dated 15th July, 2020 being Annexure P-2 to the writ petition, by passing a reasoned and speaking order after giving an opportunity of hearing to the petitioner or his authorized representatives within four weeks from the date of receipt of such reply to the impugned show cause notice and till such final order is passed on the issue of preliminary jurisdiction of the adjudicating authority there will be no further proceeding and any further proceeding in the impugned proceeding will depend upon the final order to be passed on the reply to such show cause notice. At the time of hearing, petitioner will be entitled to raise all the points with regard to the impugned show cause notice - petition disposed off.

Summary

Issues involved: Challenge to show cause notice under Customs Act, 1962 on grounds of jurisdiction.

Summary:
The petitioner challenged an impugned show cause notice issued by the Joint Commissioner of Customs (Port) under Section 124 of the Customs Act, 1962, arguing that the item imported is "Free" and the time to respond to the notice had expired. The Court held that the petitioner should have responded to the notice and made a case before the adjudicating authority. The Court extended the time for the petitioner to reply to the notice by two weeks and directed the adjudicating authority to consider and dispose of the reply on the issue of jurisdiction. The authority was instructed to pass a reasoned order after giving an opportunity of hearing to the petitioner within four weeks. No further proceedings were to take place until a final order was passed on the issue of jurisdiction.

During the hearing, the petitioner was allowed to raise all points regarding the show cause notice. If the petitioner applied for provisional release of the goods, the adjudicating authority was to consider the application irrespective of the final order on the show cause notice. The respondent's advocate mentioned that the goods in question were prohibited and could not be released. The writ petition was disposed of with these observations and directions.