2025-VIL-597-CESTAT-DEL-CU
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CUSTOMS CESTAT Cases

Customs - Section 28(9), Delayed Adjudication - The appellant, imported an aircraft and availed concessional customs duty under a notification. DRI commenced an investigation and issued a show cause notice on 31.07.2013. However, the show cause notice was not adjudicated for over 10 years, with the matter being repeatedly kept in the call book. Department finally adjudicated the show cause notice on 19.01.2023, ordering confiscation of the aircraft, imposition of redemption fine, and penalties on the appellant - Whether the impugned order is liable to be set aside on the ground of inordinate delay in adjudication of the show cause notice beyond the time limit prescribed under Section 28(9) of the Customs Act - HELD – The impugned order is liable to be set aside for the sole reason that the show cause notice was not adjudicated within the time limit prescribed under Section 28(9) of the Customs Act - The provisions of Section 28(9) of the Customs Act, required the show cause notice to be adjudicated within one year from the date of notice, "where it is possible to do so". The Delhi High Court in Swatch Group India Pvt. Ltd. and VOS Technologies India Pvt. Ltd., held that the phrase "where it is possible to do so" only provides flexibility in cases of insurmountable exigencies or circumstances that make it impracticable or impossible for the adjudicating authority to decide the matter within the stipulated time. No such exceptional circumstances or exigencies existed in the present case - The department had failed to provide any justification for the inordinate delay of over 10 years in adjudicating the show cause notice - The indifference of the adjudicating authority to complete the adjudication within the statutory time limit cannot be condoned to the detriment of the assessee or the interest of the exchequer - The practice of placing the show cause notice in the call book without any reasonable justification is not permissible, as per the rulings in Balaji Enterprises and VOS Technologies - The impugned order is set aside for the sole reason that the show cause notice was not adjudicated within the time limit prescribed under Section 28(9) of the Customs Act – the appeal is allowed
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