SPECTRA FASHIONS Vs. UNION OF INDIA

JUDGEMENT

(1.) The short ground canvassed by the petitioners is that the show-cause notice issued and recovery proceedings initiated by the Customs authorities after a period of more than eight years from the completion of the export transaction by the first petitioner are hopelessly barred by Section 28 of the Customs Act, 1962.

(2.) The petitioners obtained an advance licence in 2002 for export of ladies' garments. The raw material imported was polyester with limited content of cotton and spandex.

(3.) The petitioners exported short-sleeved T-shirts and ladies' trousers. The Customs authorities drew samples from the goods exported by or about the year 2005. It was only by a notice of July 11, 2011, which the petitioners claim to have received in 2013, that the Customs authorities complained that the fabric imported into India under the advance licence had not been used for the purpose of manufacturing of the goods exported. As a consequence, the duty exemption allowed to the first petitioner was demanded to be refunded. A personal hearing was also afforded to the first petitioner by the show-cause notice dated July 11, 2011.