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<h1>Customs proceedings under Section 124 quashed after 9-11 year delay deemed unreasonable and arbitrary</h1> <h3>M/s Maersk Line India Pvt Ltd Versus The Commissioner of Customs, Joint Commissioner of Customs</h3> M/s Maersk Line India Pvt Ltd Versus The Commissioner of Customs, Joint Commissioner of Customs - TMI Issues:The judgment involves the challenge of an Order in Original dated 24.12.2020 and 20.01.2021 on the grounds of being unreasonable and arbitrary, violating Article 14 of the Constitution of India, due to the initiation through show cause notices made 9 to 11 years after the subject import.Brief Facts:The petitioner, a private limited company, engaged in container-related business, received import consignments from M/s. Global Overseas Indian at Chennai Port in April 2009, July 2011, and June 2012. The consignments were discharged in good condition, and the petitioner filed Import General Manifests. Subsequently, show cause notices were issued regarding Steel Scrap / Secondary Defective Mild Steel Bars, leading to the petitioner's penalty under Section 112 of the Act.Contentions:The petitioner argued that the delayed initiation of show cause notices after 9 to 11 years post-import was unreasonable and illegal. The respondent countered by mentioning the availability of a statutory appeal under Section 128 of the Act and non-compliance with Foreign Trade Policy requirements by the petitioner.Legal Analysis:The judgment delves into the absence of a prescribed limitation period under Section 124 of the Act for confiscation, emphasizing the necessity of actions being taken within a reasonable time. Citing relevant case laws, the judgment highlights the principle that any action after an unreasonable delay becomes arbitrary and violates Article 14 of the Constitution of India.Conclusion:After analyzing the provisions of the Act and considering the nature of rights and obligations, the judgment concludes that proceedings initiated 9 to 11 years post-import are unreasonable and arbitrary. Consequently, the impugned proceedings under Section 124 are set aside, and the writ petitions are disposed of without costs.