TaxTMI 
TaxTMI 
2026 (7) TMI 1112
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....oner No. 2 is the proprietorship concern of petitioner No.3, who is also impleaded in his individual capacity. They are aggrieved by the composite Show Cause Notice (for short, 'SCN') issued to the two firms dated 26.09.2025 (Annexure P-1). The notice is primarily assailed on the ground that the jurisdictional facts justifying the issuance of the notice are lacking in the facts of the case and, therefore, the impugned action deserves interference by this Court under Article 226 of the Constitution of India. 2. Undisputed facts of the case are that the two firms were engaged in importing areca nuts. During the course of business, the petitioners imported certain consignments from Sri Lanka. The documents were submitted along with the cons....
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....er the CoO the invoice no. is "2020EXPRVINT03-A." CoO has been sent to CID investigation 2 CO/ISFTA/2020/20212 dated 29.09.2020 9022210 dated 01.10.2020 INLDH6 RV International Basnayaka Exports The dat eof coO is stated as "20.10.2020" in the report whereas the CoO has date indicated as "09.09.2020." CoO has been sent to CID investigation 3 CO/ISFTA/ 2020/20212 dated 20.10.2020 9277949 dated 20.10.2020 INLDH6 Star Spices Basnayaka Exports CoO not issued by Department of Commerce 3. As per the above description, the certificate of origin relied upon by petitioner No. 1 dated 20.10.2020 was never issued by the Department of Commerce. So far as petitioner No. 2 is concerned, the cer....
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....3, which are reproduced hereinafter:- "9. The show-cause notice is a detailed one. It is stated therein that through departmental source, overseas enquiries had been carried out. The information which was gathered during the said overseas enquiry through departmental source, however, was not final and conclusive. Be that as it may, concededly, no document pertaining thereto was supplied or was shown to the appellant. The Commissioner of Customs, however, in his order dated 29-12-2000 made liberal use of the said information, stating: "In the meantime, through departmental source the overseas enquiry was carried out and it was partly ascertained that the exporting company, Texpo International of 57 Wyndham St., 5th Floor, H....
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....such an intermingled fashion that it would be evident to conclude that tetracycline is meant for concealment." 11. The question which arises for consideration is as to whether the impugned order was passed in violation of the principles of natural justice. Before, however, we advert to the said question, we may notice the stand taken by the respondents herein in their counter-affidavit before this Court, which is in the following terms: "In Paras 27 and 28 of the show-cause notice, sufficient indications have been given as regards the outcome of the overseas enquiry. Although the documents were not given to them, the initial burden was upon the appellants to show their bona fide mistake. Unless sufficient materials are pla....
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.... Batra (supra), the Supreme Court has essentially reiterated the principles laid down in Kothari Filaments (supra). In Kothari Filaments (supra), the overseas inquiry through departmental sources had not become final and conclusive. No document pertaining thereto was supplied or shown to the appellant either. The appellant therein was also not apprised of the factual accusations forming the basis of the action. It was in this context that the Supreme Court found the jurisdictional facts to be missing, and consequently interfered with the action of the Department. However, the facts of the present case are quite distinct. 8. In this case, petitioner No.3 is the proprietor of the two firms, which have relied upon certificates of origin iss....