Show cause notice issued beyond the period of 3 years of payment of duty drawback not sustainable

Raghav International Vs Union Of India & Anr. (Gujarat High Court)

Gujarat High Court held that it is settled legal position that authority cannot issue show cause notice after a period of three years for assessment/ export period. Accordingly, notice cannot be issued beyond the period of 3 years of payment of the duty drawback.

Facts- The petitioners are before this Court seeking to mainly challenge the show-cause notice issued by the respondent Authority after a period of about more than six/ten years, which are not permissible as per the settled legal position.

Conclusion- This Court had an occasion to deal with the identical issue in the case of M/s. S J S International and held that the authority cannot be issue show-cause notice after a period of three years for assessment / export.

Thus, when the issue is covered as per the decision of this Court as noted above in the case of M/s. S J S International, we allow all these petitions accordingly, quashing and setting aside the impugned show-cause notices issued by the respondent authorities, which are admittedly beyond the period of three years.

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