Durga Apparels Pvt Ltd Vs Commissioner of Customs (Delhi High Court)
In a ruling addressing the complexities of legal timelines affected by personal hardship and widespread disruption, the Delhi High Court has condoned a significant delay of over 1610 days in filing a customs appeal by M/s Durga Apparels Pvt. Ltd. The court set aside an order by the Customs, Excise & Service Tax Appellate Tribunal (CESTAT) that had dismissed the appeal solely on the grounds of delay, directing the tribunal to hear the case on its merits.
The case has its origins in an investigation initiated against Durga Apparels and its directors based on allegations of exporting goods at highly over-valued prices primarily to illicitly claim duty drawbacks. Following the investigation, a Show Cause Notice was issued by the customs authorities in Faridabad on August 14, 2013. The company filed a detailed reply to this notice nearly three years later, on June 27, 2016.
Subsequently, the original adjudicating authority passed an Order-in-Original on September 26, 2016. Both the company and the department challenged this order before the Commissioner of Customs (Appeals). The Commissioner (Appeals) issued an order on May 28, 2019, which largely upheld the original order. This appellate order concluded that the goods were indeed exported under fraudulent duty drawback claims, leading to the rejection of 365 shipping bills and deeming the goods liable for confiscation under Section 113 of the Customs Act, 1962. However, the matter was partially sent back (remanded) to the original adjudicating authority for a fresh determination of the penalties to be imposed under Section 114(iii) of the Act.
