2018 (8) TMI 1609

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....o specific demand is made in the show cause notice?" 2. The brief facts of the case are that in an alleged violation of the law, imported computer components (i.e. memory cards, RAMs etc.) valued at Rs. 28,29,550/- were seized from the respondent on 01.06.2007. Pursuant thereto the statement of one Raj Kumar Ahuja was recorded who has conceded to the purchase of the articles from overseas visitors. Show cause notice under Section 124 proposing confiscation of goods was issued. The final order confirmed the show cause notice and confiscated goods, with an option to redeem the goods, provided a fine of Rs. 5 lakh was paid. The amount of Rs. 4 lakh was paid. Additional penalty of Rs. 1 lakh was imposed on M/s. R.K. International. The amount....

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....ad proposed realization of customs duty of Rs. 64,93,598/-. With the proposal in show cause notice for levy of duty, the decision in para 11 of the judgment appears to have been arrived at. It appears that judgment in Jagdish Cancer & Research Centre has not laid down the ratio that a show cause notice can ignore proposal for levy of customs duty. Therefore, ratio laid down in Metal Forgings case warrants to state that para 11 of the Jagdish Cancer & Research Centre's case is to be read with the governing fact that proposal to levy customs duty was made through a show cause notice. 10. In view of the aforesaid analysis, it may be stated that the levy of customs duty in Jagdish Cancer & Research Centre case having been proposed by a show ....

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.... to the importer/noticee, the latter has to pay the relevant duties. He reiterated this position by relying upon Jagdish Cancer and Research Centre (supra). The provision relied upon, i.e. Section 125(2), no doubt, is in mandatory terms and suggests that when the duty is payable by the concerned party or importer, the quantum of the duty - even on a tentative basis should necessarily be spelt out in the show cause notice, which is essential under Section 124 of the Act. The facts in Jagdish Cancer and Research Centre (supra) itself show that the show cause notice under Section 125 had proposed customs duties (Rs.64,93,598/-) and had invoked Section 111(O) and also proposed penalty under Section 112. 4. In other words, the authority could....