Vishal Video And Appliances Pvt Ltd Vs Commissioner of Customs ACC (Import) (Delhi High Court)
Delhi High Court addressed appeals filed by Vishal Video and Appliances Pvt Ltd against a Customs Excise & Service Tax Appellate Tribunal (CESTAT) order concerning the recovery of a previously granted customs duty refund. The company, engaged in electronic product trading, had imported mobile handsets and initially been denied tax benefits under Notification No. 12/2012-CE due to restrictive circulars. Following the Supreme Court’s decision in SRF Ltd. vs. Commissioner of Customs, Chennai, the company successfully claimed the benefit and received a refund.
However, the Customs Department, while its appeal against the refund was pending before the Supreme Court, issued protective show cause notices for recovery of the refunded amount. After the Supreme Court’s decision in ITC Ltd. v. Commissioner of Central Excise, Kolkata-IV, the department confirmed the demand for the reclaimed refund. Vishal Video challenged this before the CESTAT, arguing that the show cause notices were not adjudicated within the six-month limitation period stipulated by Section 28 of the Customs Act, 1962.
The CESTAT, after reviewing the timeline of events, including the Supreme Court’s judgment and the relaxation period due to the COVID-19 pandemic, concluded that the adjudication had occurred within the permissible timeframe. Consequently, the CESTAT dismissed Vishal Video’s appeals. The High Court, in these present appeals, acknowledged the company’s argument regarding the limitation period and the validity of the show cause notices. Recognizing the complexity of the case, the High Court separated these appeals from other related appeals filed by the same company.
The Delhi High Court also expressed strong concerns about the persistent delays caused by the Customs Department in providing timely instructions to their standing counsels. To address this systemic issue, the Court directed the Commissioner of Customs to formulate a Standard Operating Procedure (SOP) outlining the process for ensuring prompt instructions are given to counsels when advance copies of case files are served. Furthermore, the Court mandated that the Directorate of Revenue Intelligence (DRI), Directorate of General GST Intelligence (DGGI), Customs Department, and Central GST (CGST) collaborate to create a unified SOP to prevent future delays and ensure smooth court proceedings. The matter is scheduled for further hearing in March 2025.
FULL TEXT OF THE JUDGMENT/ORDER OF DELHI HIGH COURT
