Sun Aviation Pvt. Ltd. Vs Commissioner of Customs (Export) (Delhi High Court)
The Hon’ble Delhi High Court in M/s. Sun Aviation Pvt. Ltd. v. Commissioner of Customs (Export) [W.P. (C) 17189/2022 dated February 7, 2023] has set aside the penalty order passed by the Revenue Department on the ground that the order was passed in violation of principles of natural justice. The assessee was not afforded full opportunity to contest the allegations against it. Set aside the penalty order.
Facts:
M/s. Sun Aviation Pvt. Ltd. (“the Petitioner”) is an International Air Transport Association (“IATA”) Agent and is engaged in booking air freight for exporters and sub-agents through various airlines. The Petitioner receives bookings for air freight from clearing agents, sub-agents, importers/exporters and brokers. The Revenue Department (“the Respondent”) issued a penalty order dated August 31, 2022 (“the Impugned Order”) of INR 2,70,00,000/-, in respect of five shipping bills issued to M/s Manisha Enterprises on the grounds that the exporter was non-existent and the exports under the said Shipping Bills, were to avail export benefits fraudulently.
Being aggrieved, this petition has been filed.
The Petitioner contended that it had not received any Show Cause Notice (“SCN”) and, therefore, it was not afforded with sufficient opportunity of hearing. However, even on repeated requests of the Petitioner till the date of personal hearing, the Respondent never served the SCN.
Issue:
Whether the Impugned Order can be passed without serving a SCN to the Petitioner?
Held:
The Hon’ble Delhi High Court in W.P. (C) 17189/2022 held as under:
