Messrs Vimlon Dyeing And Printing ... vs Union Of India
2021 Latest Caselaw 5860 Guj

      C/SCA/6878/2021                            ORDER DATED: 11/06/2021




            IN THE HIGH COURT OF GUJARAT AT AHMEDABAD

              R/SPECIAL CIVIL APPLICATION NO. 6878 of 2021

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        MESSRS VIMLON DYEING AND PRINTING MILLS PVT. LTD.
                            Versus
                        UNION OF INDIA
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Appearance:
AMAL PARESH DAVE(8961) for the Petitioner(s) No. 1,2
MR ADITYA TRIPATHI, ADVOCATE for MR PARESH M DAVE(260) for the
Petitioner(s) No. 1,2
for the Respondent(s) No. 1,2,3,4,5
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 CORAM:HONOURABLE THE CHIEF JUSTICE MR. JUSTICE
       VIKRAM NATH
       and
       HONOURABLE MR. JUSTICE BIREN VAISHNAV

                             Date : 11/06/2021

                              ORAL ORDER

(PER : HONOURABLE THE CHIEF JUSTICE MR. JUSTICE VIKRAM NATH)

1. We have heard Shri Aditya Tripathi for Mr. P.M.

Dave, learned counsel for the petitioners.

2. Admit. Issue Notice.

3. By means of this petition under Article 226 of the

Constitution, the petitioners have prayed for quashing of

a show cause notice dated 25.10.2019 issued by the

Additional Director General, Directorate of Revenue

C/SCA/6878/2021 ORDER DATED: 11/06/2021

Intelligence, Ludhiana Zonal Unit, on the ground that the

said officer cannot fall within the definition of a proper

officer and as such could not have issued the notice under

Sections 28 and 124 of the Customs Act, 1962. Reliance

has been placed upon a recent judgment of the Supreme

Court dated 09.03.2021 passed in Civil Appeal No.1827

of 2018, M/s.Canon India Private Limited vs.

Commissioner of Customs, wherein it has been held that

officers of Directorate of Revenue Intelligence would not

fall within the domain of proper officer for initiating

proceedings under Section 28 of the Customs Act, 1962.

Pursuant to the aforesaid show cause notice an

adjudication order has since been passed on 31.12.2020.

Shri Tripathi submitted that even the adjudication order

is under challenge by means of this petition as the

Supreme Court in the case of M/s.Cannon India Private

Limited (supra) has held that any demand raised

pursuant to such show cause notices issued without

jurisdiction would also be bad in law. He therefore

submits that interim relief against the demand may be

granted in favour of the petitioners.

C/SCA/6878/2021 ORDER DATED: 11/06/2021

4. In view of the above and for the reasons that a

number of similar petitions where challenge is on the

basis of M/s.Cannon India Private Limited (supra),

interim orders are passed, we provide as an interim

measure that till further orders of this Court, the

respondents shall not insist for recovery of any demand

pursuant to the impugned adjudication order dated

31.12.2020 passed by the Commissioner of Customs,NS-

V.

5. Connect with Special Civil Application No.6770 of

2021.

(VIKRAM NATH, CJ)

(BIREN VAISHNAV, J) VATSAL S. KOTECHA