The Delhi High Court in the case Anand International And Ors. Versus Commissioner Of Customs observed and has held that the period spent in the disposal of the appeal before the CESTAT, i.e., which being between the filing and the final order being passed, shall not be counted towards the period stipulated as it is stated under Section 28 (9) of the Customs Act.
The bench comprising of Justice Sanjeev Sachdeva and Justice Ravinder Dudeja in the case observed that the Tribunal has already heard the appeal of the petitioner and the order is reserved by the court.
In the present case, the petition had filed an interim reply to the Show Cause Notice on 26.08.2023, and had also sought an opportunity to cross-examine certain witnesses, thus, the same was denied by the court.
Therefore, the petitioner approached the Customs Excise and Service Tax Appellate Tribunal, CESTAT by way of an appeal. Thus, the arguments on the appeal have already been concluded, and judgment has been reserved by the court for January 30, 2024.
The court in the case observed that on the same day after the arguments were reserved, by letter dated 30.01.2024, the petitioner was called upon for filing the final reply and also to appear for hearing on February 9, 2024 and since the appeal of the petitioner has already been heard and judgment is reserved by the court, if the respondent concludes the hearing on the Show Cause Notice, it would cause grave prejudice to the petitioner.
On the other hand, it has been contended by the department before the court that the Show Cause Notice has to be adjudicated within a statutory period of one year in terms of Section 28 (9) of the Customs Act, 1962. Thus, at the request of the petitioner, the time was enlarged by a further period of one year, as stipulated by the proviso to the said section. Since the period is likely to expire, the adjudicating authority has issued notice for concluding the proceedings.
The court while considering the facts and circumstances of the case observed and has directed that the hearing on the show cause notice be deferred until the order is pronounced by the CESTAT and once the order is pronounced and subject to the order, a period of two weeks will be granted to the petitioner to file a final reply to the Show Cause Notice.
Further, the court in the case stated that the adjudicating authority may proceed with the conclusion of the show cause notice after giving the petitioner an opportunity for a personal hearing.
The counsel, Advocate Chinmaya Seth and A.K. Seth appeared for the Petitioner.
The counsel, Advocate Hapreet Singh represented the respondent.