Anand International And Ors. Vs Commissioner of Customs (Delhi High Court)
Introduction: The case of Anand International and others vs Commissioner of Customs, heard by the Delhi High Court, addresses the issue of whether the period spent in the disposal of an appeal before the CESTAT should be counted towards the period stipulated under Section 28(9) of the Customs Act.
Detailed Analysis: The petitioners sought a direction to the respondent not to pass a final order on the Show Cause Notice dated 20.10.2022. They argued that they had filed an interim reply to the Show Cause Notice on 26.08.2023 and had sought an opportunity to cross-examine certain witnesses, which was denied. Consequently, they approached the Customs Excise and Service Tax Appellate Tribunal (CESTAT) by way of an appeal, with arguments concluded and judgment reserved on 30.01.2024.
The respondent argued that the Show Cause Notice must be adjudicated within a statutory period of one year, as per Section 28(9) of the Customs Act, 1962. They stated that the time was extended at the petitioner’s request, but since the period was likely to expire, the Adjudicating Authority issued notice to conclude the proceedings.
The Delhi High Court directed that the hearing on the Show Cause Notice be deferred until the order is pronounced by the CESTAT. It was clarified that the period spent in the disposal of the appeal before the CESTAT shall not be counted towards the period stipulated under Section 28(9) of the Customs Act.
Conclusion: The Delhi High Court’s ruling in the case of Anand International vs Commissioner of Customs provides clarity on the interpretation of Section 28(9) of the Customs Act. It ensures that the period spent in the disposal of an appeal before the CESTAT does not unfairly affect the statutory period for adjudicating a Show Cause Notice. This ruling protects the rights of the parties involved and upholds principles of fairness in administrative proceedings.
FULL TEXT OF THE JUDGMENT/ORDER OF DELHI HIGH COURT
1. Petitioner seeks a direction to the respondent not to pass final order on the Show Cause Notice dated 20.10.2022.
2. Learned counsel for petitioner submits that petitioner had filed an interim reply to the Show Cause Notice on 26.08.2023 and had also sought an opportunity to cross-examine certain witnesses, which was denied. Accordingly, petitioner was constrained to approach the Customs Excise and Service Tax Appellate Tribunal (CESTAT) by way of an appeal being Appeal No. C/55723/2023. He submits that arguments on the appeal have already been concluded and judgment has been reserved on 30.01.2024.
3. Learned counsel submits that on the same day after the arguments were reserved, by letter dated 30.01.2024, petitioner has been called upon to file a final reply and also to appear for hearing on 09.02.2024. Learned counsel submits that since the appeal of the petitioner has already been heard and judgment is reserved, in case respondent concludes the hearing on the Show Cause Notice, the same would cause grave prejudice to the petitioner.
4. Issue notice. Notice is accepted by learned counsel for respondent.
5. Learned counsel for respondent submits that the Show Cause Notice has to be adjudicated within a statutory period of one year in terms of Section 28 (9) of the Customs Act, 1962. He submits that at the request of the petitioner, the time was enlarged by a further period of one year as stipulated by the proviso to the said Section. He submits that since the period is likely to expire, the Adjudicating Authority has issued notice for concluding the proceedings.
6. Keeping in view the facts and circumstances of the case and specially in view the fact that the Tribunal has already heard the appeal of the petitioner and order is reserved, we direct that hearing on the Show Cause Notice be deferred till the order is pronounced by the CESTAT. Once the order is pronounced and subject to the said order, a period of two weeks be granted to the petitioner to file a final reply to the Show Cause Notice and thereafter, the Adjudicating Authority may proceed further with the conclusion of the Show Cause Notice after giving an opportunity of personal hearing to the petitioner. It is clarified that the period spent in the disposal of the appeal before the CESTAT i.e., between the filing and the final order being passed, shall not be counted towards the period stipulated under Section 28 (9) of the Customs Act.
7. Petition is disposed of in the above terms.
8. Dasti under signature of the Court Master.
