Case Law Details
Bihar Foundry & Castings Ltd. Vs Union of India through the Secretary (Jharkhand High Court)
Jharkhand High Court held that pre-show cause notice consultation u/s. 28(1)(a) of the Customs Act, 1962 are mandatory and imperative in character. Accordingly, entire proceedings carried out without pre-show cause notice (SCN) consultation is liable to be quashed.
Facts- The Petitioner is a Company having its registered office and factories in the State of Jharkhand. The Petitioner imported Steam Coal within the meaning of Section 2(23) of the Customs Act, 1962 from outside the territory of India for use in its factory in the State of Jharkhand. The Petitioner is the importer of the Steam Coal within the meaning of Section 2(26) of the Act.
Notably, the petitioner mainly contested that the impugned Orders are barred by limitation of Six months u/s. 28 (9) (a) of the Customs Act, 1962 and also entire proceedings is carried out without Pre-Show Cause Notice consultation provided u/s. 28 (1) (a) of the Act which provisions are mandatory and imperative in character and goes to the root of the matter.
Conclusion- Hon’ble Delhi HC, in the case of Victory Electric Vehicles International Pvt. Ltd Vs. UOI while dealing with exactly similar situation under proviso to Section 28(1)(a) of the Customs Act, 1962 held that the provisions of Pre-notice consultation is mandatory in character and held that the Revenue must scrupulously adhere to the same and due to non-compliance thereof the adjudication order is liable to be quashed.
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