S and T Plastic Machines Private Limited Vs Commissioner of Customs (Madras High Court)
Madras High Court recently addressed a writ petition filed by S and T Plastic Machines Private Limited against the Commissioner of Customs concerning a show cause notice dated October 30, 2024. The notice alleges that anti-dumping duty is applicable to the company’s imported goods because the Entry Inwards of the vessel occurred at 22:12 hours on December 22, 2023, which was after the e-gazette notification imposing the duty was digitally signed at 21:48:35 IST on the same day.
S and T Plastic Machines contested the show cause notice, arguing that the precise time of the actual uploading and publication of the anti-dumping duty notification in the e-gazette was not disclosed. The company claimed that despite requesting documentary evidence of this precise timing from the Customs authorities, their request was not fulfilled. The petitioner asserted that if the exact time of the notification’s publication were known, they would not be liable for the anti-dumping duty, as the vessel’s entry inwards, according to them, predates the notification.
The High Court, after hearing the arguments, noted that even according to the petitioner, the inward entry of the vessel was recorded at 22:12 hours on December 22, 2023, which is after the time mentioned in the show cause notice (21:48 hours) as the digital signing time of the notification. The court observed that the issue of the applicability of the anti-dumping duty can only be properly adjudicated after the Customs authorities consider the reply submitted by S and T Plastic Machines to the show cause notice.
The court reiterated the established legal principle that a show cause notice can typically be challenged only if it is issued without legal authority, lacks jurisdiction, or if the issue has already been definitively pre-determined. While the petitioner argued pre-determination, the court found insufficient evidence on record to support this claim at this stage. Acknowledging that the petitioner had already submitted a reply to the show cause notice on January 3, 2025, the High Court disposed of the writ petition with a specific directive. The court instructed the first respondent, the Commissioner of Customs, to thoroughly consider the company’s reply on its merits and in accordance with the law. Furthermore, the court directed the authorities to grant S and T Plastic Machines a personal hearing before passing a final order on the matter. The court concluded that the grounds for challenging the show cause notice were not adequately substantiated by the petitioner.
FULL TEXT OF THE JUDGMENT/ORDER OF MADRAS HIGH COURT
Mr.M. Santhanaraman, learned senior counsel accepts notice on behalf of the respondents.
