Shivek Sharma Shivek Sharma Vs Union of India (Rajasthan High Court)
The Rajasthan High Court set aside a customs demand notice, ruling that the 14-year delay in adjudication was unreasonable and violated principles of natural justice, citing precedents on the need for timely quasi-judicial proceedings. The court held that such a delay causes irretrievable prejudice to the assessee and that the department’s failure to provide a valid reason for the delay or inform the petitioner about the case status was unacceptable.
The case of Shivek Sharma vs. Union of India before the Rajasthan High Court revolves around the quashing of an Order-in-Original passed under Section 122 of the Customs Act, 1962, and the underlying show cause notice. The petitioner, Shivek Sharma, is the legal heir of his late father, Shri Pawan Kumar Sharma, the proprietor of M/s J. Minakshi International. The Directorate of Revenue Intelligence (DRI) had initiated an investigation against the firm in 2006 for alleged misuse of export promotion schemes. Based on these investigations, a show cause notice was issued on March 31, 2008, to Shri Pawan Kumar Sharma and others, seeking the recovery of duty drawback, interest, and penalties.
Shri Pawan Kumar Sharma passed away on April 22, 2021. The petitioner, who was a minor at the time the notice was issued, did not inherit the business and was unaware of the pending proceedings. After a significant delay of over 13 years, the respondent-department, without providing a reason for the delay, initiated the adjudication process and issued notices for a personal hearing. Upon learning of the proceedings, Shivek Sharma informed the department of his father’s death and requested copies of the show cause notice and other documents. He later argued that he was unable to understand the complex transactions and that, as per settled law, liabilities do not transfer to legal heirs upon death. He requested that the proceedings be dropped.
