COMMISSIONER OF CUSTOMS, CALCUTTA Vs. M.M. EXPORTS

JUDGEMENT

(1.) BY consent the impugned order is set aside. However, we wish to make it clear that as far as possible the High Court should not interfere at the stage when the Department has issued the summons. This is not one of those exceptional cases where the High Court should have interfered at the stage of issuance of the summons. It may be mentioned that all other questions on merits are expressly kept open. We have not examined the merits of the case. The Department is entitled to proceed in accordance with law. The appeals are accordingly disposed of.

(2.) THE respondent herein, Kanhaiya Exports (P) Ltd., is an exporter. On his exports he got the benefit of a duty exemption scheme. During the relevant period 159 consignments were exported. According to the Department later on a search was conducted. Certain documents were seized such as shipping bills, licences issued under the Foreign Trade (Development and Regulation) Act and some other documents. At this stage it may be pointed out that in case of ten consignments show-cause notices were issued. Admittedly, for the remaining consignments no such show-cause notices were ever issued.

(3.) THE narrow question which we are required to decide is: whether without issuing a show-cause notice is the Department entitled to proceed against the exporter? Till today the Department has not even acted pursuant to the show-cause notices which the Department had issued after the judgment impugned herein. Be that as it may, we may state that the Department is at liberty to collect the material in accordance with law but it cannot proceed against the exporter without issuance of show-cause notices. If they have collected the. material in accordance with law and if they are today entitled to proceed in law by issuing show-cause notices they may do so. Suffice it to state that with regard to the consignments other than the abovementioned ten consignments the Department cannot proceed against the exporter without issuance of show-cause notice. Subject to above, the appeal is dismissed.