Messers Vidres India Ceramics Pvt. Ltd. & Anr. Vs Union of India & Ors. (Gujarat High Court)
The Gujarat High Court considered a writ petition challenging a corrigendum dated 22.08.2016 issued in connection with a show cause notice dated 10.04.2014 under the Customs Act, 1962. The petitioners sought to prohibit the adjudicating authority from relying upon the corrigendum and the additional documents referred to therein, contending that the adjudication proceedings had already concluded and only the final order remained to be passed.
The dispute arose from imports of pigments made by the petitioner company between December 2012 and July 2013 under 25 Bills of Entry. The goods were assessed as pigments under Customs Tariff Heading 32071090, the applicable customs duty was paid, and the consignments were cleared. Subsequently, the Directorate of Revenue Intelligence (DRI) recorded the statement of the petitioners’ director and issued a show cause notice proposing to reclassify the imported goods as “Printing Ink” instead of “Pigments,” thereby seeking to levy customs duty at a higher rate. The notice relied upon laboratory reports from Kandla Customs House and the Central Revenues Control Laboratory.
The petitioners filed replies asserting that the imported goods were pigments, sought cross-examination of the departmental chemical examiner, and participated in the adjudication proceedings. The adjudicating authority permitted cross-examination, and a final personal hearing was conducted on 11.07.2016. According to the petitioners, after completion of the hearing, the matter was reserved for final orders. However, on 22.08.2016, the department issued a corrigendum introducing a new paragraph in the show cause notice alleging that the goods imported by another entity, M/s. Krishna Colour Chem, were the same as those imported by the petitioners and sought to rely upon additional documents and statements.
