Esjaypee Impex Pvt Ltd Vs Union of India (Bombay High Court)
Bombay High Court held that adjudicating authority should adjudicate the show cause within a reasonable time. Inordinate delay/ delay adjudication contravenes procedural fairness and hence the same violates principles of natural justice.
Facts- The Petitioner No.1 is a private limited company whereas the Petitioner No.2 is the Director. The Respondent No.2 in its investigation alleged undervaluation of import of cloves of foreign origin, declared value of which was lower than prevailing international prices. During the investigation, the office and residential premises of one Shri Bhumish Shah working as an Indenting Agent were searched and Indian currency as well as some incriminating documents were seized; that Shri Bhumish Shah deposed before the Respondent No.2 stating that he had acted on behalf of the Petitioners in respect of import of spices and that the consignments of cloves were regularly under-declared and differential amounts were paid by the importers. Thus, on the basis of the investigation, the impugned SCN was issued to said Bhumish Shah and the Petitioners, proposing to reject the declared value, confiscation u/s. 111(d) and (m) of the Customs Act; demand of differential custom duty as well as penalty u/s. 112(a) and 114A of the Customs Act on the Petitioners.
