2019 (7) TMI 1432 - HC - Customs

Court emphasizes statutory appeal process for customs duty evasion allegations, rejects petition to quash show cause notice.

M/s SJ Woolen Mills and others Versus Union of India and others

M/s SJ Woolen Mills and others Versus Union of India and others - TMI Issues: Alleged evasion of customs duty through misdeclaration and undervaluation of imported yarn; Validity of show cause notice; Legality of Customs (Amendment and Validation) Act, 2011; Constitutionality of Section 28(11) of the Customs Act.In this case, the petitioner-firm, involved in importing yarn, faced allegations of customs duty evasion by misdeclaring the value and description of yarn and incomplete declaration. The Directorate of Revenue Intelligence conducted searches based on intelligence received, revealing similar modus operandi in subsequent sales in India. A Show Cause Notice was issued, accusing the petitioner of evading customs duty and demanding penalties. The petition sought to quash the notice, challenge the Customs (Amendment and Validation) Act, 2011, and declare Section 28(11) of the Customs Act unconstitutional.The respondents filed a written statement, and during the hearing, it was revealed that the impugned notice had been adjudicated, and the petitioner had already appealed the decision. The court acknowledged the appeal filed before CESTAT, Chandigarh, and directed the petitioners to pursue the remedy of appeal already initiated, thereby indicating that parallel proceedings could not continue simultaneously. The judgment focused on the procedural aspects of the case, emphasizing the importance of following the statutory appeal process and refraining from duplicative legal actions.