Case Note & Summary
The petitioner, Balaji Impex, filed a writ petition before the Bombay High Court challenging a communication from the Assistant Commissioner of Customs (Preventive), Alibag Division, which informed them that the Deputy Commissioner of Customs had finalized provisional assessments of certain bills of entry and passed orders demanding payment of short-paid duty. The petitioner's grievance was that no hearing was afforded to them before finalization, no speaking order was passed, and the principles of natural justice were violated. The respondents urged that the petitioner should be relegated to the remedy of appeal under the Customs Act. However, during the hearing, counsel for the respondents admitted that the petitioner was not given an opportunity of being heard. The court, relying on this admission, held that there was a manifest failure of compliance with natural justice and that a fit case for exercise of writ jurisdiction had been made out. The court quashed the impugned communication and orders, directing the respondents to pass fresh orders after giving the petitioner a reasonable opportunity of hearing and a speaking order. The petition was allowed with no order as to costs.
Headnote
A) Customs Law - Provisional Assessment - Finalization Without Hearing - Customs Act, 1962, Sections 18, 128 - The petitioner challenged the finalization of provisional assessments by the Deputy Commissioner of Customs without any prior hearing or speaking order. The court held that the admitted failure to afford an opportunity of being heard constituted a manifest violation of natural justice, warranting interference under Article 226 despite the alternative remedy of appeal. (Paras 2-4) B) Constitutional Law - Writ Jurisdiction - Alternative Remedy - Article 226 of the Constitution of India - The court held that where there is a clear breach of natural justice, the writ court may entertain a petition without relegating the petitioner to the appellate remedy. (Para 3)
Issue of Consideration
Whether the finalization of provisional assessments without affording a hearing to the importer and without passing a speaking order violates principles of natural justice, and whether the writ court should interfere despite availability of appellate remedy.
Final Decision
The impugned communication and orders are quashed and set aside. The respondents are directed to pass fresh orders after giving the petitioner a reasonable opportunity of hearing and a speaking order. Rule made absolute. No order as to costs.
Law Points
- Principles of natural justice
- Right to be heard
- Speaking order requirement
- Writ jurisdiction despite alternative remedy
