Delhi High Court Upholds Principles of Natural Justice in Customs Case

Ex parte customs order against Govind Global Ventures set aside; matter remanded for fresh adjudication ensuring procedural fairness.

In a significant ruling, the Delhi High Court has reinforced the principles of natural justice by setting aside an ex parte order issued by the Commissioner of Customs (Adjudication) against Govind Global Ventures Pvt. Ltd. The bench, consisting of Justices Prathiba M. Singh and Renu Bhatnagar, observed that the procedural requirements of fair notice and opportunity for a personal hearing were not met in the initial adjudication process.

The case revolved around an impugned order dated July 26, 2024, and a subsequent corrigendum dated October 9, 2024, which were passed without serving the necessary notices to the petitioner, Govind Global Ventures Pvt. Ltd. The petitioner challenged this order under Articles 226 and 227 of the Constitution of India, citing a lack of proper service of notices and the denial of a personal hearing.

The petitioner, represented by Mr. Prem Ranjan Kumar, argued that multiple notices issued by the customs department were not received, and the order was passed in their absence. The court noted that the failure to serve notices and the absence of tracking reports for the dispatched orders pointed to lapses in the procedural safeguards.

The court, while setting aside the impugned order, directed the customs department to remand the matter back to the adjudicating authority for fresh adjudication. It emphasized the need for adherence to principles of natural justice by providing the necessary documents and ensuring a personal hearing.

Furthermore, the court ordered the customs department to maintain proper tracking receipts and delivery reports for notices sent via speed post in future cases. This direction aims to prevent similar procedural lapses and uphold the fairness of the adjudication process.

The decision underscores the judiciary's commitment to ensuring that legal processes adhere to the fundamental principles of natural justice, providing a fair opportunity for all parties to be heard.

Bottom Line:

Customs Law - Principles of natural justice and procedural fairness - Impugned ex parte order passed without proper service of notices and opportunity for personal hearing - Matter remanded back for fresh adjudication after providing necessary documents and personal hearing.

Statutory provision(s): Articles 226 and 227 of the Constitution of India, Customs Act, 1962 Sections 14, 28(4), 28A, 125, 111(m), 114A, 114AA

Govind Global Ventures Pvt. Ltd v. Commissioner Of Customs (Adjudication), (Delhi)(DB) : Law Finder Doc Id # 2817070