Calcutta HC stays Customs SCN against Hinduja Global: Prima Facie Finds No Jurisdiction Without SEIS Scrip Cancellation [Read Order]

In a recent ruling, the Calcutta High Court granted an interim stay on a show-cause notice (SCN) issued by the Principal Commissioner of Customs (Port) against Hinduja Global Solutions Limited. The court found that the Customs authorities prima facie lacked jurisdiction to issue the SCN since the SEIS (Service Exports from India Scheme) scrips in question had not been canceled by the issuing authorities, namely Cochin EPZ and DGFT, Mumbai.

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Hinduja Global Solutions Limited filed a writ petition challenging the SCN, arguing that the Customs Department had no authority to question the validity of SEIS scrips unless they were formally revoked by the issuing authority. The petitioners contended that the SCN was arbitrary and beyond the jurisdiction of the Customs authorities. They sought the court’s intervention to stay the notice, citing a lack of legal basis for its issuance.

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The Customs Department countered that the SCN was a preliminary step in the adjudication process and that all objections raised by the petitioner could be addressed before the adjudicating authority. The respondents also questioned the maintainability of the writ petition, arguing that the petitioner had alternative remedies available under the statutory framework.

The single bench comprising Rajarshi Bharadwaj observed that the SEIS scrips had not been invalidated by the competent issuing authorities which raised concerns about the Customs Department’s jurisdiction in issuing the SCN. Keeping the issue of maintainability open for final adjudication, the court found sufficient grounds to grant interim relief to the petitioner.

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The High Court ordered an interim stay on the SCN until the final disposal of the writ petition. It also directed the respondents to file an affidavit-in-opposition within six weeks, with the petitioner granted four weeks thereafter to file a reply. The matter has been scheduled for a full hearing in May 2025.

To Read the full text of the Order CLICK HERE

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