2020 (12) TMI 714 - HC - Customs

Supreme Court remands case emphasizing treaty provisions, High Court halts show cause notice

The Supreme Court, in Civil Appeal No. 9010 of 2019, set aside the High Court's order and remanded the case for a decision on its merits, emphasizing the ... Seeking declaration that the assessment of all the bills of entry relating to import of tin ingots by the petitioner from Malaysia is final, conclusive and binding - applicability of customs notification No.46/11 dated 01.06.2011 - import of tin ingots from Malaysia - petitioner submits that when the Supreme Court has remanded the parties back to the High Court by restoring the writ petition observing that the Treaty between Republic of India and Association of South East Asian Countries more particularly Article 24 therefore cannot be decided by the adjudicating authority which has to be addressed by the High Court in the writ petition, Principal Commissioner ought not to have issued the said show cause notice. HELD THAT:- The Principal Commissioner of Customs, Ahmedabad is restrained from proceeding with the show cause notice dated 03.12.2019 until further orders. Stand over to 11.02.2021. To be listed along with connected matters. Issues:1. Challenge to assessment of bills of entry for import of tin ingots from Malaysia.2. Effect of customs notification No.46/11 dated 01.06.2011.3. Dismissal of writ petition and subsequent appeal to Supreme Court.4. Remand by Supreme Court and directions to High Court.5. Issuance of show cause notice by Principal Commissioner of Customs.6. Alleged contradiction with Supreme Court's directions.7. Request for stay of show cause notice.Analysis:1. The petitioner initially sought a declaration regarding the assessment of bills of entry for importing tin ingots from Malaysia based on customs notification No.46/11 dated 01.06.2011.2. The High Court had previously dismissed the writ petition, directing the petitioner to the adjudicating forum.3. The petitioner then appealed to the Supreme Court through a Special Leave Petition (S.L.P.), which was granted, leading to Civil Appeal No.9010 of 2019.4. The Supreme Court set aside the High Court's order, remanding the case back to the High Court for a decision on its merits, emphasizing the role of the High Court in addressing certain treaty provisions.5. Following the remand, the Principal Commissioner of Customs, Ahmedabad issued a show cause notice dated 03.12.2019, indicating a change in the assessment of bills of entry, contrary to the petitioner's expectations.6. The petitioner argued that the issuance of the show cause notice by the Principal Commissioner contradicted the Supreme Court's directions, as the High Court was tasked with addressing specific treaty provisions.7. Consequently, the petitioner requested a stay on the show cause notice, which was granted by the High Court, restraining the Principal Commissioner from proceeding further until further orders.8. The case was adjourned to a future date for further proceedings, with instructions for digital signing of the order for official use and communication.This detailed analysis covers the issues raised in the judgment, highlighting the legal complexities and the sequence of events leading to the current decision.