Natural justice and jurisdictional objections can justify writ review where a Customs penalty order ignores filed objections.
A writ petition challenging a Customs penalty order under Section 114AA was treated as maintainable despite an alternative statutory remedy because the challenge raised alleged violations of natural justice and jurisdiction. The court noted that such objections are recognised exceptions to the alternate remedy rule. The impugned order was found vulnerable because the adjudicating authority did not deal with the petitioner's objections, including the jurisdictional challenge and the plea that the hearing was only a formality. The order was therefore set aside and the matter remanded for fresh consideration after affording a reasonable opportunity of hearing.
Issues: (i) Whether the writ petition was maintainable despite the availability of an alternative statutory remedy in view of the alleged violation of natural justice and jurisdictional objections; (ii) Whether the impugned penalty order under Section 114AA of the Customs Act was vitiated for non-consideration of the objections raised by the petitioner.
Issue (i): Whether the writ petition was maintainable despite the availability of an alternative statutory remedy in view of the alleged violation of natural justice and jurisdictional objections.
Analysis: The rule of alternative remedy was noted to admit well-settled exceptions, including violation of natural justice and lack of jurisdiction. The challenge raised by the petitioner was founded on both grounds, namely that the objections were not dealt with and that the very invocation of penalty under Section 114AA was questioned on jurisdictional footing.
Conclusion: The writ petition was entertained and not rejected on the ground of alternate remedy.
Issue (ii): Whether the impugned penalty order under Section 114AA of the Customs Act was vitiated for non-consideration of the objections raised by the petitioner.
Analysis: The objections raised by the petitioner, including the challenge to the jurisdiction to invoke Section 114AA and the plea that the opportunity granted was only an empty formality, were not dealt with in the impugned order. The adjudicating authority was required to consider and answer those objections, particularly when they had a bearing on the validity of the proposed penalty. The omission showed non-application of mind and denial of a meaningful opportunity of hearing.
Conclusion: The impugned order was set aside and the matter was remanded for fresh consideration after affording a reasonable opportunity of hearing.
Final Conclusion: The writ petition succeeded to the extent that the penalty order was annulled and the proceedings were sent back for reconsideration in accordance with law.
Ratio Decidendi: Where objections raising natural justice and jurisdictional challenges are specifically filed, the adjudicating authority must deal with them in a reasoned manner; failure to do so renders the order vulnerable to judicial interference and remand.
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