T. T. Enterprises Vs Principal Commissioner of Customs (Preventive) (Madras High Court)
Summary: The Madras High Court considered a writ petition challenging Order-in-Original No.105165/2024 dated 19.02.2024 passed by the Principal Commissioner of Customs (Preventive), Chennai-III. The petitioner challenged the order, inter alia, on the grounds of unreasonable delay in adjudicating a Show Cause Notice dated 05.08.2009 and denial of relied-upon documents and cross-examination, allegedly violating principles of natural justice.
The petitioner was a proprietary concern engaged in importing apples from M/s. Evans Fruit Company, USA. During 2006 and 2008, apples were imported through Chennai and Tuticorin Ports. The Directorate of Revenue Intelligence investigated alleged deliberate undervaluation, including alleged remittance of differential amounts outside regular banking channels. A hard disk from the petitioner’s office computer was seized and forensic examination allegedly revealed e-mail correspondence, invoices and payment particulars suggesting that two sets of invoices had been generated. Following investigation, the Show Cause Notice dated 05.08.2009 proposed rejection of the declared transaction value, re-determination of assessable value, confiscation, recovery of differential customs duty with interest and penalties under the Customs Act, 1962.
The petitioner contended that the proceedings remained pending for nearly fifteen years and that the adjudicating authority failed to address the specific objection regarding delay, despite reliance on the decision in J. Sheik Parith. The petitioner also argued that, when the notice was issued, Section 28(9) required adjudication within one year from the date of notice, “where it is possible to do so”. The provision was subsequently amended by the Finance Act, 2018, whereby the expression “where it is possible to do so” was omitted and a proviso permitted extension of the prescribed period in specified circumstances.
