Customs adjudication requires proof of prior show cause notice; absence of service led to fresh consideration.

An adverse customs order cannot stand unless prior issuance and service of the statutory show cause notice are established. Here, the respondents could not produce proof of service or any acknowledgment of receipt, and the impugned order itself did not refer to the alleged notice but only to a consultative memo. The Court therefore set aside the order and permitted the petitioner to treat it as a show cause notice, file objections within four weeks, and obtain fresh adjudication after a reasonable hearing.

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Issues: Whether the impugned customs order could be sustained when the respondents failed to demonstrate that a show cause notice had been issued and served on the petitioner.

Analysis: The challenge was confined to the absence of a show cause notice. The respondents stated that a notice dated 16.08.2021 had been issued, but were unable to produce proof of service or point out any acknowledgment of receipt. The impugned order also did not refer to that notice and instead only reflected the consultative memo. In such circumstances, the requirement of prior notice under the Customs Act was not shown to have been complied with.

Conclusion: The impugned order was set aside. The petitioner was permitted to treat the impugned order as a show cause notice and file objections within four weeks, whereafter the respondents were required to decide the matter in accordance with law after granting a reasonable opportunity of hearing.

Final Conclusion: The writ petition succeeded on the ground of absence of demonstrated show cause notice, and the matter was reopened for fresh consideration after notice and hearing.

Ratio Decidendi: An adverse customs order cannot be sustained where prior issuance and service of the statutory show cause notice are not established, and the affected party must be given a reasonable opportunity to respond before fresh adjudication.

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