Shri Ram Agro Chemicals Pvt. Ltd. Vs Union of India and others (Punjab and Haryana High Court)
Summary: The Punjab and Haryana High Court considered a writ petition challenging a show cause notice dated 17 May 2007 issued by the Directorate of Revenue Intelligence to Shri Ram Agro Chemicals Pvt. Ltd., principally on the grounds of the jurisdiction of DRI and prolonged non-adjudication. The petitioner, a private limited company engaged in manufacture of Zinc Sulphate, had imported Zinc Ash and Zinc Skimming during 2003-2006. After the Customs Authorities permitted clearance, DRI initiated investigation alleging mis-declaration of value and issued the show cause notice.
The petitioner approached the Settlement Commissioner in 2008, but the application was rejected on 21 August 2009 and the matter was relegated to the Adjudicating Authority. The petitioner filed its reply in September 2012 and attended personal hearing on 22 October 2012, but the notice remained unadjudicated. A further hearing notice was issued in April 2017. The Court considered the petitioner’s reliance on GPI Textile Ltd., Anil Kumar Soni and Harkaran Dass Vedpal, as well as the respondents’ objections concerning alternative remedy, delay allegedly attributable to the petitioner, pending proceedings and the amended Section 28 of the Customs Act, 1962. The Court held that the writ petition was maintainable where the issue concerned a reasonable period of limitation. It relied upon the jurisprudence holding that show cause notices cannot remain pending indefinitely and examined the amended Section 28(9) and Section 28(9A), which prescribe time limits and conditions concerning extension of the adjudication period.
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