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of <h1>Court dismisses challenge to customs notice, emphasizes clarity in future notices</h1> <h3>ROYAL OIL FIELD PRIVATE LIMITED Versus UNION OF INDIA</h3> The court dismissed the petition challenging a show cause notice for enhancing the invoice value of imported goods under a registered contract. The court ... Writ jurisdiction - Show cause notice - Validity of Issues:Challenge to show cause notice regarding invoice value for imported goods under a registered contract.Analysis:The petition challenges a show cause notice issued for enhancing the invoice value of goods imported under a registered contract. The petitioner asserts that the imports under scrutiny were made pursuant to a registered contract, and a previous show cause notice for enhancing invoice value had been quashed by the CESTAT. The court entertained the petition based on this contention.The petitioner had a contract with a Canadian company for importing LDPE/HDPE/PP Mixed Plastic Granules/Powder. The initial consignments faced disputes with Customs authorities regarding invoice value, leading to a writ petition allowing provisional clearance. Subsequent imports were also cleared provisionally.A show cause notice was issued for rejecting the invoice value and assessing the goods at a higher value. The Assistant Commissioner of Customs upheld the higher value, but the CESTAT later directed acceptance of the invoice value. A fresh show cause notice was then issued, prompting the current petition.The petitioner argued that the new show cause notice was improper as the previous CESTAT decision should apply. The Customs authorities contended that the goods were imported beyond the contract period, with different suppliers for some entries, justifying the new notice.The court found discrepancies in the goods covered by the CESTAT order and those under the new notice. While acknowledging the contract period issue, it deemed the new notice vague and lacking valid reasons for rejecting the invoice value. The court quashed the notice but allowed for a fresh notice with proper grounds before final assessment.In conclusion, the court dismissed the petition, quashed the vague show cause notice, and directed Customs authorities to finalize the assessment within three months, emphasizing the need for clarity in future notices.
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