COMMISSIONER OF CUSTOMS, AMRITSARversusM/S. AJAY KUMAR AND CO.
- Citation
- 2009 INSC 757
- Decided
- 8 May 2009
- Disposal
- Dismissed
- Bench
- ARIJIT PASAYAT
Holding
The appeal is dismissed; the defect in the show‑cause notice does not invalidate the Tribunal and High Court decisions.
Summary
The respondent, Mis. Ajay Kumar & Co., purchased a transferable Duty Entitlement Pass Book (DEPB) and associated licences originally issued to Mis. Parker Industries. The Commissioner of Customs issued show‑cause notices to the respondent demanding recovery of Rs.12,45,174 under Section 28(1) of the Customs Act, but the notices made no reference to any alleged infraction by the original licence‑holder. The Customs Appellate Tribunal held the demand barred by limitation, a view affirmed by the Punjab & Haryana High Court. On appeal, the Supreme Court examined whether the defect in the show‑cause notice warranted setting aside the Tribunal and High Court orders. Relying on Commissioner of Customs (Import) Bombay v. Mis. HICO Enterprises, the Court held that the deficiency in the notice did not invalidate the earlier findings and dismissed the appeal, leaving the demand barred by limitation.
Issues considered
- Whether a show‑cause notice issued to a transferee of a DEPB, without mentioning any alleged infraction by the original licence‑holder, is defective and can be set aside.
- Whether the demand for recovery under Section 28(1) of the Customs Act can be sustained against the transferee when the original licence‑holder is not named.
- Whether the demand is barred by limitation.
Legislation cited
- Customs Act, 1962s. 111, s. 28(1)
Subjects
Judgment
[2009) 9 S.C.R. 17
COMMISSIONER OF CUSTOMS, AMRITSAR A
""
v.
MIS. AJAY KUMAR AND CO.
(Civil Appeal No.645 of 2008)
MAY 8, 2009
__, 8
[DR. ARIJIT PASAYAT AND DR. MUKUNDAKAM
.>\
' SHARMA, JJ.]
Customs Act, 1962 - Ss.28(1) and 111 - Purchase of
transferable Duty Entitlement Pass Book (DEPB) including c
___,t licence - Show cause notice issued to transferee licence-
holder Without making any reference therein to the alleged
infraction of the original licence-holder - Held: The show
cause notice was defective - Appeal filed by Revenue
i dismissed. D
Commissioner of Customs (Import) Bombay v. Mis.
HICO Enterprises (2008) 11 SCC 720, relied on.
Case Law Reference:
E
(2008) 11 sec 120 relied on Para 4
CIVIL APPELLATE JURISDICTION: Civil Appeal No. 645
t
of 2008.
From the Judgment & Order dated 15.03.2007 of the High F
Court of Punjab & Haryana at Chandigarh in Customs Appeal
No. 17 of 2006.
WITH
C.A. No. 2529 of 2008. G
,./
P.V. Shetty, S.K. Bagaria, Arvind K. Shukla, S.N. Terdol,
G.D. Mishra, P. Narasimhan, B. Krishna Prasad, B.V. Ba/aram
17 H
-. 18 SUPREME COURT REPORTS [2009] 9 S.C.R.
,...
A Das, Rajesh Kumar, Javaid Muzaffar and Umesh Kumar for the
appearing parties. t-
The Judgment of the Court was delivered by t
DR. ARIJIT PASAYAT, J. 1. Challenge in this appeal is
B ~
to the order passed by the Punjab & Haryana High Court
upholding the order of the Customs, Excise & Service Tax
Appellate Tribl,mal, New Delhi (in short 'CESTAT') dismissing
the appeal filed by the appellant.
)(.
t
)
c 2. Background facts in a nutshell are as follows:
Respondent acquired and/or purchased transferable Duty
t
Entitlement Pass Book (in short the 'DEPB') including licenses
dated 6.11.2000 and 20.11.2000 issued in the name of Mis.
Parker Industries. By show cause notices dated 30.5.2002, ;.
D
12.6.2002 and 26.7.2002 Respondent was called upon to show
cause why an amount of Rs.12,45, 174/- could not be recovered
and demanded in terms. of proviso to Section 28(1) bf the
Customs Act, 1962 (in short the 'Act'). Noticee denied the
allegations.
E
However, Commissioner of Customs, Amritsar confirmed
the demand along with interest and penalty. Same was held to
be jointly payable by the original license holder and licensee. It +
was held that goods were liable in confiscation under Section ~
F 111 of the Act.
The Tribunal allowed the appeal by respondent holding the
demand to be barred by limitation. The High Court upheld the
view.
G 3. In this appeal challenge is to the aforesaid conclusions.·
Learned counsel for the respondent pointed out that no role was 1-.
ascribed to it in the show cause notice.
4. It is seen that in view of the fact that in the show cause
H notices, there was no reference to the alleged infraction of
COMMISSIONER OF CUSTOMS, AMRITSAR v. AJAY 19
KUMAR AND CO.
Mis. Parker Industries. the transferor of the license in question. A
The Judgments of the CEST AT and the High Court do not suffer
from any infirmity to warrant interference. It is to be noted that
in Commissioner of Customs (Import) Bombay v. Mis. HICO
Enterµnses [2008 (11) SCC 720) similar view was taken. The
appeal 1$ dismissed. B
:.;, CIVIL APPELLATE JURISDICTION : Civil Appeal No .
. 2529 of 2008.
DR. ARIJIT PASAYAT, J. In view of the judgment of this
Court in Commissioner of Customs (Import) Bombay v. ·Mis. C
HICO Enterprises [2008 (11) SCC 720), this appeal deserves
to be dismissed which we direct accordingly.
B.B.B. Appeals dismissed.
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