1999 (7) TMI 72 - HC - Central Excise

Court Halts Duty Demand sans Notice, Orders Document Production | Adverse Inferences

The court restrained authorities from demanding duty on imported goods without a show cause notice. It directed the issuance of a specific notice for ... Offence - Investigation Issues:- Writ of mandamus to prevent payment of duty without show cause notice- Allegations of harassment and delay in investigation process- Lack of specificity in notices issued to produce documents- Request for investigation to be conducted by local unit instead of requiring travel to another locationAnalysis:The petitioners sought a writ of mandamus to restrain the authorities from demanding duty on imported goods without issuing a show cause notice. The counter affidavit stated that no demand for duty had been made, and a proper show cause notice would be issued after the investigation. The petitioners' grievance was the pressure to pay duty without a formal notice. The court noted the authorities were refrained from demanding payment until the investigation concluded.The petitioners argued that despite providing necessary information, the investigation was prolonged unnecessarily. Notices lacked specificity on required documents, causing confusion. The respondents were accused of harassing the petitioners through this conduct. The petitioners requested the investigation be handled by the local unit in Madras to expedite the process.The respondents contended that delays were also due to the petitioners' actions, such as requesting postponements based on health or personal reasons. The court directed the fourth respondent to issue a notice specifying the documents needed for the investigation. If the petitioner possessed the documents, they were to be produced; otherwise, a reply was required. The local unit in Madras could conduct the investigation if necessary, and the respondents were instructed not to pressure the petitioners for payment or document production until the investigation was completed. Non-production of documents could lead to adverse inferences. The writ petition was disposed of with these directions, emphasizing adherence to the specified procedure.