TMI Blog2024 (1) TMI 837X X X X Extracts X X X X X X X X Extracts X X X X ..... held that such action must be taken within a reasonable time - Thus any proceeding initiated or completed after a reasonable period would suffer from the vice of arbitrariness thereby falling foul of Article 14 of the Constitution of India. Now what would constitute a reasonable period for taking any action or passing an order would depend on the scheme of the Act and the nature of rights and obligations flowing therefrom and the facts of the case. Keeping the above aspect in mind and on gleaning through the provisions of the Act, the largest period for taking action is provided under Section 28 of the Act for recovery of duty in case of fraud, suppression or wilful misstatement. The impugned proceedings under Section 124 of the Act, 9 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mited company incorporated under the Indian Companies Act, 1956 and carries on business as container owners/carriers and other shipping related activities/business. The petitioner as part of its business receives for export and import containers from and out of all ports in India for export and from and all ports outside India for import. The petitioner was approached by M/s. Global Overseas Indian, Chennai to import various shipments at Chennai Port, India. In respect of these shipments, Bills of Lading were issued. The said consignments were shipped on board the Vessel during the months of April 2009, July 2011 and June 2012 and subsequently reached Chennai. The consignments were discharged from the Vessel on various dates in good order a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... w cause notices 9 to 11 years after the subject import is beyond reasonable period and thus arbitrary and illegal. 5. To the contrary it is submitted by the learned counsel for the respondent that there is an effective alternative remedy against the impugned orders by way of an statutory appeal under Section 128 of the Act. Though in the counter it is submitted that the import has not complied with requirements / mandate prescribed under the Foreign Trade Policy. 6. I do not propose to examine the correctness or otherwise of the above submission and intend to confine myself to the question as to whether the issuance of notices culminating in the impugned orders 9 to 11 years after the subject import suffers from the vice of being unre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vision also, the revisional authority has to initiate the proceeding within a reasonable time. Any unreasonable delay in exercise may affect its validity. What is a reasonable time, however, will depend upon the facts of each case. 10 . Thus any proceeding initiated or completed after a reasonable period would suffer from the vice of arbitrariness thereby falling foul of Article 14 of the Constitution of India. Now what would constitute a reasonable period for taking any action or passing an order would depend on the scheme of the Act and the nature of rights and obligations flowing therefrom and the facts of the case. Keeping the above aspect in mind and on gleaning through the provisions of the Act, the largest period for taking act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re the weight of the cargo discharged by the vessel of a Steamer Agent is questioned, it is not possible for a Steamer Agent to defend themselves against the show cause notice long after the vessel had sailed. Therefore, the third question of law is also be answered in favour of the appellant. (ii) J.Sheik Parith Vs. Commissioner of Customs and another reported in 2020 (374) E.L.T. 15 (Mad.): 23. In Premier Ltd. v. UOI (W.P. No. 12780 of 2016 dated 13.02.2017), a Division Bench of the Bombay High Court considered a challenge to the show cause - cum-demand notice dated 22.07.1991, in response to which personal hearings were fixed only in 1997. The Court held that such delay would vitiate the validity of the notice itself ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he date on which the assessment relating to that year had become final. In the present case, the periods of assessment stretch from 1989-1990 to 1994- 1995. The pre-assessment notices have been sent only on 23.08.1999 and proceedings completed in 2015. Thus even on this score, the time taken for conclusion of proceedings appears inordinately delayed and it thus unacceptable . The impugned orders are quashed. 11. In my considered view, the impugned proceedings under Section 124 of the Act, 9 to 11 years after the date of the subject import cannot stand the scrutiny of reasonableness/arbitrariness inasmuch as any proceedings under Section 124 of the Act, 9 to 11 years after the import is unreasonable. Thus the impugned proceedings are se ..... X X X X Extracts X X X X X X X X Extracts X X X X
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