2012 (12) TMI 153 - SC - Customs

Supreme Court orders Adjudicating Authority to provide documents for fair re-quantification

M/s KEMTECH INTERNATIONAL PVT LTD ETC. Versus COMMISSIONER OF CUSTOMS (I&G)

The Supreme Court directed the Adjudicating Authority to provide all relevant documents to the appellants for re-quantification of short levy of customs ... Re-quantification of short levy of customs duty - appeal against the order of tribunal remanding back the order for re-quantification - held that:- The grievance of the appellants is the Adjudicating Authority is required to re-quantify the short levy of customs duty on the basis of prices quoted by M/s Export Management Service Group ( EMSG ) to M/s Kemtech , but, at no point of time, the appellants were confronted with the said information. The appellants prays that the Adjudicating Authority may be directed to supply copies of all the documents which are likely to be relied upon for the purpose of fresh adjudication in terms of the impugned order, to enable to the appellants to meet revenue's case. The prayer made is reasonable - Adjudicating Authority shall supply all the documents, on which it proposes to place reliance, to the appellants. Issues:Remittance of case for re-quantification of short levy of customs duty without providing relevant information to the appellants.Analysis:The Supreme Court heard the appellants' grievance regarding the remittance of the case back to the Adjudicating Authority for re-quantification of the short levy of customs duty without providing them with crucial information. The Customs Excise & Service Tax Appellate Tribunal directed the re-quantification based on prices quoted by Export Management Service Group (EMSG) to Kemtech, which the appellants were not made aware of at any point. The appellants requested the Adjudicating Authority to supply all relevant documents to meet the revenue's case for fresh adjudication. The Court, upholding the principles of natural justice, found the appellants' request reasonable. Consequently, the Court directed the Adjudicating Authority to provide all documents it intends to rely upon to the appellants for examination. The appellants were also granted the opportunity to provide explanations and present additional evidence in support of their claim. The appeals were disposed of with no order as to costs, ensuring fairness and due process in the re-quantification process of the customs duty levy.