Manish Kumar Jain Vs Principal Commissioner of Customs (CESTAT Chennai)
CESTAT Chennai held that issuance of show cause notice after elapsing of more than six years period from the time of exports is unsustainable in law. Accordingly, order passed thereon cannot be sustained.
Facts- The present appeal is filed against the Order-Original dated 25.03.2019 passed by the Commissioner of Customs (Preventive), Trichy imposing a penalty of Rs.25,00,000/- on M/s. Ayyappan Industries and a penalty of Rs.50,00,000/- on Mr. Manish Kumar Jain u/s. 114(iii) of the Customs Act, 1962.
DGCEI had initiated investigations based on the information that the appellants and other exporters were attempting to claim and receive ineligible duty drawback by overvaluing the export consignments and by falsifying export documents. Accordingly, the Show Cause Notice No. 63/2011 dated 29.09.2011 was issued. After due process of law, the impugned Order-in-Original No. 01/2019 dated 25.03.2019 was passed in terms of which the Commissioner of Customs (Preventive), Trichy, confirmed a penalty of Rs.25,00,000/- on the first appellant and Rs.50,00,000/- on the second appellant u/s. 114(iii) of the Customs Act, 1962.
Conclusion- Held that there are huge latches by unduly delaying the adjudication, and as the Show Cause Notice was issued after elapsing of more than six years period from the time of exports, the impugned Order-in-Original No. TCP-CUS-PRV-COM-001/2019 dated 25.03.2019 passed by Commissioner of Customs (Preventive), Tiruchirappalli cannot be sustained insofar as the imposition of penalty on the appellants is concerned. And so, penalties imposed on the Appellants in these appeals are ordered to be set aside.
