2024 (1) TMI 99 - HC - Customs

Suspension of petitioner's IE Code - illegal import made by the petitioner with the connivance of the Customs Authority - HELD THAT - Given the fact the petitioner spends more time in courts in the last four years than doing its business, it is only appropriate that it works out its remedy before the first respondent. The petitioner is directed to file its appeal within a period of two weeks, and once the same is filed, the first respondent is required to entertain the same without reference to any period of limitation provided therefor and dispose the matter after giving an opportunity of proper and effective hearing to the petitioner on all aspects, for which it prefers an appeal. The writ petition is disposed of.

Summary

Issues involved: Challenge to suspension of Importer Exporter Code (IE Code) and legality of imports without license.

Summary:

Issue 1 - Suspension of IE Code:
The petitioner, engaged in importing articles for pharmaceutical, food, and beverage industries, faced a show cause notice alleging the need for a license for certain imports. Despite the petitioner's explanations and court interventions, the suspension of the IE Code was repeatedly challenged and reinstated by different authorities. The petitioner's contention was that the suspension was done without following due process.

Issue 2 - Legality of Imports:
During the legal proceedings, the petitioner managed to make imports from the US and Japan, paying import duties and clearing goods with customs authorities' approval. The respondent argued that these imports were unauthorized and facilitated through connivance with customs officials. The petitioner emphasized that these imports were made during the restoration of the status quo ante and the withdrawal of a specific appeal.

In the final judgment, the court directed the petitioner to file an appeal within two weeks before the first respondent to address the suspension of the IE Code. The first respondent was instructed to entertain the appeal without limitation constraints and ensure a fair hearing for the petitioner. The writ petition was disposed of without costs, concluding the legal proceedings.