Writ challenge to customs show-cause notice failed where authorities could verify receipt and use of goods in a 100% EOU.

The Gujarat High Court considered a writ challenge to a show-cause notice issued by excise and customs authorities after inspection of imported goods at the factory premises. It noted that the department had jurisdiction to verify, under Circular No. 88/98-Cus. dated 02.12.1998, whether goods imported for a 100% EOU were actually received and used in the unit. As the dispute involved factual questions and the petitioners could raise their defence before the issuing authority, the writ petition was not maintainable at that stage and the notice was not quashed.

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Issues: Whether the show-cause notice issued by the excise and customs authorities was without jurisdiction and liable to be quashed in writ jurisdiction.

Analysis: The petition challenged a notice issued after a detailed examination of the imported goods at the factory premises, although an earlier scrutiny had been carried out at the port. The Court noted that the excise department had jurisdiction in the matter and that, in light of Circular No. 88/98-Cus. dated 02.12.1998 governing supervision and movement of goods in a 100% EOU, the officers were entitled to verify whether the goods had actually been received and used in the unit. The dispute involved questions of fact and the petitioners could place their defence before the issuing authority.

Conclusion: The writ petition was not maintainable at that stage and the notice was not held to be jurisdiction; the petitioners were left to the notice before the authorities.

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