Court quashes Customs Commissioner's order for lack of natural justice, directs fresh disposal.

The court quashed the order passed by the Commissioner of Customs under the Customs Act, 1962, due to a failure of natural justice principles. The show cause notice served was incomplete, causing prejudice to the petitioner. The court reinstated the show cause notice for fresh disposal, directing the petitioner to file a reply within two weeks and the Commissioner to provide a personal hearing and pass an order in compliance with the law.

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Issues:
Challenge to order passed by Commissioner of Customs under Customs Act, 1962 for breach of natural justice principles.

Analysis:
The petition challenged an order passed by the Commissioner of Customs under the Customs Act, 1962. The order confirmed a show cause notice demanding custom duty, imposing penalty, and confiscating imported goods. The petitioner contended that the order was passed in breach of natural justice principles as the show cause notice served was incomplete without annexures 'A' and 'B'. The petitioner received the complete notice only on 4th June, 2018, and requested time to file a reply. However, the Commissioner confirmed the notice on 13th July, 2018 without waiting for the reply or a hearing. The petitioner argued that this violated natural justice and sought the court's intervention.

The respondent argued that there was an alternative remedy available under the Act, and the petitioner's conduct indicated a delay tactic. The respondent highlighted that the petitioner did not approach the Commissioner for soft copies of annexures 'A' and 'B' and did not attend three scheduled hearings. The respondent contended that the court should not entertain the petition due to lack of cooperation from the petitioner.

The court noted that the show cause notice required a response within 30 days but was incomplete when served. The complete notice, including annexures 'A' and 'B', was received by the petitioner on 4th June, 2018. The court emphasized that the 30-day period to respond starts only after the complete notice is served. The petitioner had requested additional time to respond, but the Commissioner proceeded ex-parte without granting the requested time. The court stressed that the objective of a show cause notice is to inform the party of the case and provide sufficient time to respond. Failing to provide the complete notice within the stipulated time causes prejudice to the party.

Concluding that there was a failure of natural justice principles, the court quashed the impugned order and restored the show cause notice for fresh disposal by the Commissioner of Customs. The petitioner was directed to file a reply within two weeks, and the Commissioner was instructed to provide a personal hearing and pass an order in accordance with the law. The petition was disposed of accordingly.

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