Applicability of Section 124 of Customs Act, 1962 and issuance of Order in Original

[MK Singh]

My question related to if any importer gave in writting that he did not want any Personel Hearing and SCN under Section 124 of The Customs Act, 1962;

1. What is the meaning of above?

2. If not SCN is given, can the case be adjudicated by given direct order in original?

3. Can SIIB, DC give Order in Original without giving SCN under Section 124 Of Customs Act?

4. Any other legality if any.

Please guide.

[Rajagopalan Ranganathan]

Sir,

According to Section 124 of the Customs Act, no demand of duty, imposition of penalty or confiscation of goods can be adjudged without issuing proper shape cause notice. Even if any importer gave in writing that he did not want any Personal Hearing and SCN under Section 124 of The Customs Act, 1962 the department is bound to issue show-cause notice and provide an opportunity of being heard (personal hearing). Otherwise, the demand will be set aside by the appellate authorities.

[KASTURI SETHI]

Affording opportunity for personal hearing is must. Service of SCN upon the accused is must. Case cannot be adjudicated without both legal requirements.

[Raghunandhaanan rvi]

Sir

SCN is the foundation of matter of levy and recovery of duty, penalty, and interest. The Assessee is required to reply to the SCN following which an opportunity for a personal hearing will be granted to the Assessee. Thereafter the adjudicating officer shall pass the appropriate order in original.

A personal hearing gives you an opportunity to explain the details to the adjudicator in person. During the personal hearing, you must accompany your counsel so as to ensure that all the points have been well covered.

If the Assessee does not want to use the opportunity of personal hearing and gives it in writing, it literally means that he does not have anything more to say on the issue other than the points contained in the reply letter. In such cases, the adjudicator can pass the order. This is my view.

AI Summary

Show-cause notice requirement: adjudication under the Customs Act requires issuance of SCN and opportunity to be heard.
Section 124 requires issuance and service of a show-cause notice and an opportunity for personal hearing before any demand for duty, penalty or confiscation is adjudicated. A written waiver of personal hearing by the assessee does not eliminate the obligation to issue a proper show-cause notice; if the assessee files a reply and declines a hearing in writing, the adjudicating officer may pass an order on the basis of the record.