2026-VIL-1014-DEL-CU
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CUSTOMS High Court Cases

Customs - Computation of statutory period for adjudication of Show Cause Notice – Application of Section 28(9A) of the Customs Act when interim order restraining coercive action pending – Petitioners imported duty-free raw materials under Advance Authorisation Licences and allegedly diverted the same to domestic market without fulfilling export obligations in breach of actual user condition. A Show Cause Notice was issued on 24.06.2022 under Section 28(4) of the Customs Act, 1962. Petitioners sought deferment of adjudication on account of pendency of writ petition with interim order restraining coercive recovery. Proceedings were transferred to Call Book. Order-in-Original was passed on 29.11.2024 demanding differential customs duty with applicable interest – Whether administrative transfer to Call Book suspends or extends statutory timeline – HELD – Section 28(9A) is a non-obstante provision addressing situations where proper officer is unable to determine amount of duty or interest for reasons enumerated therein including when interim order of stay has been issued by High Court. The provision does not make Call Book transfer itself source of any extension; rather statutory consequence flows from existence of circumstance contemplated therein - In the present case circumstance under clause (b) of Section 28(9A) was squarely attracted inasmuch as issue forming subject matter of writ petition was directly germane to adjudication and pendency thereof coupled with interim protection prevented proper officer from proceeding to final determination. Call Book entry was merely consequential to circumstance already placed before Authority by Petitioners themselves. The requirement of communication under Section 28(9A) was substantially satisfied since it was petitioners who brought to notice of Department the pendency of writ proceedings and identified that circumstance as ground for seeking deferment - Administrative circular regulating manner of Call Book transfer cannot override or displace statutory consequence flowing from circumstance expressly contemplated by Legislature. Circumstance ceased to exist on 08.12.2023 when writ petition was dismissed. From that date statutory period of one year under Section 28(9)(b) commenced which would expire on 08.12.2024. Since Impugned Order-in-Original was passed on 29.11.2024 it was within prescribed period – The Order-in-Original was passed within period prescribed under Sections 28(9) and 28(9A) of the Customs Act, 1962 - The writ petition is dismissed
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