2017 (5) TMI 516

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....oners has assailed the impugned show cause notice on the ground that the same is without jurisdiction in view of the fact that by virtue of Circular No.21/95-Customs, dated March 10, 1995, the Board has instructed that if the Board of Approval or the Development Commissioner concerned determines that the unit has failed to export the fixed percentage of articles for the specified period, then in such case it may be held that the conditions of the exemption notification has been violated. At this stage, it will be open for the Department to issue a show cause notice to the unit for demanding the due duty on the imported product. Reference was also made to paragraph 3 of the said circular to submit that unless the Development Commissioner arr....

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.... having arrived at any conclusion with regard to default in achieving NFE after a block of five years, the respondent authorities were not justified in issuing the impugned show cause notice. It was submitted that the impugned show cause notice being beyond jurisdiction, the subsequent order-in-original has no legs to stand. It was further contended that the impugned order-inoriginal has been passed after a delay of ten years from the date of issuance of the show cause notice and that no reasons have been assigned in the impugned order-in-original as to why there was a delay in deciding the show cause notice. It was submitted that, therefore, the impugned order-in-original is bad in law also for the reason that it has been passed beyond a r....

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....ction and further that the impugned order-in-original has been passed in breach of the principles of natural justice. 4. Insofar as the challenge to the impugned show cause notice is concerned, it is noteworthy that the show cause notice is dated 30.3.2007 and the circulars on which reliance has been placed are dated 10th March, 1995 which was in existence when the show cause notice came to be issued. Thus, at the relevant time itself, the petitioners had an opportunity to challenge the show cause notice on the ground of lack of jurisdiction. However, the petitioners did not choose to do so and now seek to directly challenge the show cause notice after the same has been adjudicated by the impugned order in original. In the aforesaid prem....