Innovale Investment Pte. Ltd. Vs Principal Commissioner of Customs (CESTAT Delhi)
CESTAT Delhi held that section 28(9) of Customs Act mandates adjudication of show cause notice within one year. Thus, adjudication of notice after around 10 years of issuance, without justifiable reason, is not tenable and hence order issued thereon is liable to be quashed.
Facts- The appellant is the owner of an aircraft called Embraer Phenom 100. This Aircraft was leased to Aviators for operating the same in India and an agreement dated 06.05.2011 was executed. Aviators filed a Bill of Entry dated 24.06.2011 for assessment and clearance of the Aircraft for home consumption and claimed benefit of a Notification dated 01.03.2002, as amended by Notification dated 01.03.2011. The Aircraft was assessed to concessional rate of 2.5% duty under the said Notification.
On 12.04.2012, the appellant terminated the Lease Agreement with Aviators and also informed the Directorate General of Civil Aviation regarding the termination of the lease. The appellant, thereafter, leased the Aircraft to SSL, which had an existing permit, by a Lease Agreement dated 12.04.2012.
The Directorate of Revenue Intelligence, New Delhi, commenced investigation against all the importers of aircrafts, including Aviators, who had claimed benefit under the Notification on import of aircrafts. On 14.03.2013, the Aircraft was seized u/s. 110 of the Customs Act under the purported belief that the Aircraft was liable for confiscation u/s 111(d) and 111(o) of the Customs Act.
