9911796707
TMI Blog2025 (4) TMI 972X X X X Extracts X X X X X X X X Extracts X X X X ..... that arises for consideration in this appeal is as to whether the proceedings initiated against the appellant by issuance of a show cause notice dated 05.03.2018 that is said to have been received by the appellant on 09.03.2018 shall be deemed to be conclusive as to the matters stated in the show cause notice, in terms of section 28 (6) of the Customs Act, 1962 [the Customs Act]. 3. To examine this issue it will be appropriate to refer to the relevant facts. The appellant is engaged in the import and distribution of beer in India. It imported beer in 30 litres kegs and in retail packs from foreign suppliers during the period from October, 2014 to November, 2015. The appellant entered into a product development service agreement with suppl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tial duty in terms of section 28(5) of the Customs Act. 8. Therefore, the appellant filed letters dated 12.04.2018 and 19.07.2018 to the Principal Commissioner for closure of the proceedings in terms of section 28(6) of the Customs Act, but no response was received from the department. The appellant also claims that it appeared for personal hearing of the matter before the Principal Commissioner on 27.09.2018 and reiterated the plea that since the differential duty, interest and penalty had been paid by the appellant in full discharge of its liability under the show cause notice, the proceedings should be closed. 9. It transpires that after a period of one year, a corrigendum dated 16.07.2019 was issued to the show cause notice dated 05.0 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... said SCN under Section 28(5) of the Customs Act, 1962. However, I also find that the noticee has not paid the entire differential duty of Rs. 4,27,96,456/- and the interest applicable on it. In other words, they have short paid an amount of Rs. 3,249/- and interest thereon. 56. I find that section 28(6) of the Customs Act, 1962 provides that when the duty, interest thereon and penalty equal to fifteen per cent of the duty specified in the notice has been paid within thirty days of the receipt of the notice, the proceedings in respect of such person or other persons to whom the notice has been served under sub-section (4) of section 28 of the Act ibid be deemed to be conclusive as to the matters stated therein. As stated in para 55 above, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Rs. 4,27,93,207/-. It is also not in dispute that the entire amount demanded under the show cause notice with penalty and interest was deposited by the appellant within 30 days from the date of issuance of the show cause notice. The only dispute is as to whether the additional duty liability of Rs. 3,249/- demanded through the corrigendum dated 16.07.2019 issued to the show cause notice was required to be deposited within 30 days of the issuance of the show cause notice on 05.03.2018, as has been held by the Principal Commissioner. 14. The Principal Commissioner, in paragraph 55 of the order, admits that an amount of Rs. 4,27,93,207/- with interest and penalty was deposited by the appellant within 30 days of the issuance of the show ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in passing this order. Such orders unnecessarily lead to litigation and discourage voluntary compliance of the provisions of section 28(6) of the Customs Act. 17. At one point of time it was considered whether the Principal Commissioner should be called upon to explain how he could have expected the appellant to perform an impossibility but we have been informed that the said Principal Commissioner has since long retired. 18. Once the appellant had made the deposit in terms of section 28(5) of the Customs Act with interest and penalty and informed this fact to the department by a letter dated 12.04.2018, the department should have immediately taken steps to close the proceedings and should not have waited for over one year and six months ..... X X X X Extracts X X X X X X X X Extracts X X X X
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