Yogendra Singh Balyan Vs Union of India & Ors. (Delhi High Court)
Delhi High Court has declined to quash an order holding a Chartered Accountant (CA) liable for penalties in a case involving alleged fraudulent duty drawback claims. Yogendra Singh Balyan, the petitioner and CA, was directed by the court to avail the appellate remedy available under the Customs Act, 1962.
The case originated from exports made by M/s Abhishek Exim, which claimed duty drawback. The Department alleged that fraudulent documents were used to claim these benefits, leading to the issuance of two show-cause notices to various parties, including the petitioner, on January 14, 2021, and December 30, 2021.
After the petitioner filed a reply and hearings were conducted, the Adjudicating Authority passed an Order-in-Original on January 14, 2025, holding the petitioner liable for penalties amounting to Rs. 5,00,000.
Counsel for the petitioner challenged the order primarily on two grounds: firstly, that the show-cause notice was issued beyond the three-year limitation period, and secondly, that this issue of limitation was not considered in the impugned order.
Mr. Harpreet Singh, learned Senior Standing Counsel for the respondents, contended that the Order-in-Original clearly established the petitioner’s involvement as a Chartered Accountant who received a 1% commission on the invoice value and was implicated in the submission of fraudulent documents for claiming duty drawback. He referred to paragraph 54 of the order in support of this contention.
