Case Note & Summary
The petitioners, Rachana Garments Pvt. Ltd. and its director Dinesh Kumar Bhartiya, challenged a show cause notice dated 27 June 1997 issued by the Commissioner of Customs (Preventive) under Section 28 of the Customs Act, 1962. The notice pertained to alleged duty demands arising from exports made by M/s. Rachana Enterprises, a partnership firm, which was later taken over by Petitioner No.1. The petitioners initially raised two grounds: lack of jurisdiction and staleness due to non-adjudication for 24 years. However, at hearing, they pressed only the second ground. The petitioners had filed replies and attended personal hearings, but the notice remained unadjudicated. The court found that the inordinate delay of 24 years, without any explanation from the respondents, rendered the notice stale and an abuse of process. The court quashed the show cause notice, holding that the respondents cannot keep the notice alive indefinitely and that the delay violated principles of natural justice. The petition was allowed with no order as to costs.
Headnote
A) Customs Law - Show Cause Notice - Delay in Adjudication - Section 28 Customs Act, 1962 - Petitioners challenged a show cause notice dated 27/06/1997 on ground of inordinate delay of 24 years in adjudication despite filing replies and attending hearings - Court held that such delay renders the notice stale and an abuse of process, and quashed the notice - Held that the respondents cannot be allowed to keep the notice alive indefinitely (Paras 3-16).
Issue of Consideration
Whether a show cause notice under Section 28 of the Customs Act, 1962, not adjudicated for 24 years despite replies and personal hearings, should be quashed on ground of staleness and abuse of process.
Final Decision
Petition allowed. Show cause notice dated 27/06/1997 quashed and set aside. No order as to costs.
Law Points
- Inordinate delay in adjudication of show cause notice renders it stale and liable to be quashed
- abuse of process of law
- principles of natural justice
- Section 28 Customs Act
- 1962
