M/S. Cochin Air Cargo Clearing House vs. The Commissioner Of Customs(Preventive)

Facts

The petitioners, M/s.Cochin Air Cargo Clearing House and its representatives, are agents licensed as Customs Brokers. They accepted a shipment of "Air inlet automobile spare parts" for export through Tiruchirappalli Airport. The goods were detained by the Assistant Commissioner of Customs due to the non-availability of an E-way bill. Subsequently, the exporter provided the E-way bill, but the goods remained detained. The Assistant Commissioner sought explanations from the exporter regarding alleged overpricing. The petitioners were issued summons and appeared before the Assistant Commissioner. The petitioners claim that the customs clearance was withheld to harass them. An earlier writ petition filed by the petitioners seeking a direction not to harass them was disposed of with a direction to complete the investigation within one month. However, the impugned show cause notice was issued after the expiry of this period. The petitioners are challenging this show cause notice.

Held

The Court noted that the petitioners were permitted to canvass all their points before the adjudicating authority by way of a proper reply. The Court directed the petitioners to file their reply on or before 31.03.2020. Subsequently, the first respondent was directed to complete the adjudication proceedings in respect of the show cause notice dated 25.02.2020 and pass an appropriate order in accordance with law on or before 31.04.2020. The Court did not decide the merits of the contentions regarding limitation, jurisdiction, or the applicability of Section 147(2) of the Customs Act, 1962, but rather allowed the petitioners to raise these issues before the adjudicating authority. The Court expressly left undecided the legal questions raised by the petitioners.

Key Issues

1. Whether the show cause notice dated 25.02.2020, issued by the first respondent, is barred by limitation and issued without jurisdiction, considering the prior directions of this Court to complete the investigation by 17.01.2020? 2. Whether Section 147(2) of the Customs Act, 1962, is applicable to the petitioners, who are agents, or only to the exporter? Petitioner's arguments: The petitioners contend that the show cause notice is time-barred and issued without jurisdiction, as the investigation was not completed within the period stipulated by a previous order of this Court. They argue that Section 147(2) of the Customs Act, 1962, which deals with the liability of agents, is not applicable to them as they are merely agents and have no connection with the exporter's obligations. They also claim the notice was issued to "wreck vengeance." The petitioners also raised the issue that the time to reply to the show cause notice had expired. Revenue's arguments: The judgment does not record any specific arguments made by the respondents.