2024 (2) TMI 625 - HC - Customs

Validity of SCN - impugned SCN is issued without jurisdiction - the authority issuing the show cause notice has acted with a pre-determined mind - Violation of principles of natural justice - HELD THAT - Considering the facts and circumstances of the case, it would be appropriate that the Petitioner responds to the show cause notice. The learned counsel for the Petitioner has fairly stated that the reply to the show cause notice would be submitted to the Designated Officer within a period of four weeks from today. If that be so, the Designated Officer shall follow the procedure, and after opportunity of hearing is granted to the Petitioner, pass appropriate orders on the show cause notice in accordance with law. As the show cause notice itself is of the year 2020, it would be in the interests of justice that it is adjudicated as expeditiously as possible, and, in any event, within a period of two months from the reply to the show cause notice being filed by the Petitioner. Petition disposed off.

Summary

Issues involved:
The petition filed under Article 226 of the Constitution of India seeks relief in the form of setting aside a Show Cause Notice, directing the release of a Bank Guarantee, and forbearing the respondent from taking any further steps related to the notice.

Details of the judgment:

Issue 1: Jurisdiction of the show cause notice
The petitioner argued that the show cause notice was issued without jurisdiction and with a pre-determined mind. The petitioner requested the notice to be quashed and set aside. However, the respondent contended that the provisional release of goods was granted after a request pending investigation and valuation reports. The petitioner executed a bond and submitted a Bank Guarantee for the release of goods. The court, after hearing both parties, decided that the petitioner should respond to the show cause notice within four weeks. The Designated Officer will then pass appropriate orders after granting an opportunity of hearing to the petitioner. The court emphasized the need for expeditious adjudication, setting a deadline of two months from the filing of the petitioner's reply.

Issue 2: Provisional release of goods
The petitioner was granted provisional release of goods after executing a bond and submitting a Bank Guarantee. The goods were released on condition of fulfilling certain requirements, including the submission of a Bank Guarantee equal to 20% of the FOB value. The court acknowledged this process and directed the petitioner to respond to the show cause notice within the specified timeline.

Conclusion:
The court disposed of the petition without any costs, keeping all contentions of the parties open for future consideration.