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Court overturns order, cites lack of evidence in serving notice, upholds natural justice. Fresh hearing ordered. The Court set aside the adjudication order due to lack of evidence of proper service of the Show Cause Notice (SCN) on the Petitioner, favoring the ...
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Court overturns order, cites lack of evidence in serving notice, upholds natural justice. Fresh hearing ordered.
The Court set aside the adjudication order due to lack of evidence of proper service of the Show Cause Notice (SCN) on the Petitioner, favoring the Petitioner based on the principle of natural justice. The matter was restored for a fresh hearing and a new adjudication order, with specific instructions for the Petitioner to respond to the SCN and for the Customs Department to provide necessary documents promptly. The adjudicating authority was directed to complete the process within three months from the specified date, and the parties were issued dasti orders.
Issues: Challenge to Adjudication Order based on non-receipt of Show Cause Notice (SCN) by the Petitioner.
Analysis: The writ petition challenged the Adjudication Order dated 29th May, 2017, arguing that the Petitioner did not receive the Show Cause Notice (SCN) dated 12th August, 2016. The Court directed notice to be issued and acknowledged that the principle of natural justice had not been complied with as the Petitioner claimed no SCN was received. The Customs Department produced documents showing the dispatch of the SCN by ordinary post, but there was no proof of the Petitioner receiving it. Despite the Petitioner's address remaining the same, the SCN was not acknowledged. Additionally, three hearing notices were sent by speed post, but their delivery to the Petitioner was not confirmed. As per Section 153(a) of the Customs Act, the SCN should have been served by registered post or an approved courier, not ordinary post. Due to the lack of evidence of proper service, the benefit of doubt favored the Petitioner, leading to the setting aside of the impugned adjudication order.
The Court set aside the adjudication order and restored the matter to the Principal Commissioner of Customs for a fresh hearing and a new adjudication order without reference to the previous one. The Petitioner was instructed to appear for the fresh hearing on a specified date. The Department was directed to provide a complete copy of the SCN and related documents to the Petitioner within a week. The Petitioner's response to the SCN was required by a specified date, and any document inspection requests should be accommodated before the hearing date. The Petitioner was advised against seeking unnecessary adjournments, and the adjudicating authority was instructed to complete the process within three months of the specified date.
In conclusion, the petition was disposed of with the above terms, and dasti orders were issued to the parties involved.
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