EASTERN TRADERS Vs. UNION OF INDIA

JUDGEMENT

(1.) A show cause notice dated Aug. 7, 2018 culminating into the order-in-original dated Sept. 7, 2018 is under challenge in the present writ petition on the ground that, the adjudicating authority acted in breach of principles of natural justice in issuing the show cause notice and acted without jurisdiction in issuing the show cause notice and the impugned order, and with a closed mind while issuing the show cause notice.

(2.) The respondents are represented.

(3.) It appears from the records that, the authorities issued an initial show cause notice which was subsequently recalled. The impugned show cause notice dated Aug. 7, 2018 was proceeded upon. There is a statement in the impugned show cause notice to the effect that, the authorities issuing the show cause notice is of the view that, "it is established beyond any shadow of doubt to that the 'Noticee' was engaged in systematic fraud to defraud the Government, by misutilizing the DEPB Scheme and fraudulently obtained excess duty credit to the tune of Rs. 52,68,157.66, by massive overvaluation of their goods, with the only objective to reap of the benefit of he DEPB Scheme illegally."To my mind, such a statement in the show cause notice shows that, the adjudicating authority was acting with closed mind. The same vitiates entire proceedings. Consequently, the impugned show cause notice dated Aug. 7, 2018 and the resultant order-in-original dated Sept. 7, 2018 are quashed. This will not prevent the authorities from initiating appropriate proceedings, in accordance with law.