Delhi HC Permits Assessee to Reply on SCN Demanding Customs Duty on Various Goods Imported [Read Order]

In a recent case, the Delhi High Court has permitted the assessee to reply to the show cause notice (SCN) demanding Customs duty on various goods imported.

The Petitioner-M/s. Westan Electrical Appliances under Article 226 of the Constitution of India, inter alia, seeking directions to the Respondents to consider the representation filed by the Petitioner on 18th March 2024 and 24th March 2025 respectively.

These petitions further seek directions to the Respondents to pass a consolidated or separate speaking order(s) under Section 17(5) of the Customs Act, 1962, in respect of the following bills of entry, under which the Petitioner imported various goods. According to the Petitioner, the goods are liable to be charged to Customs Duty under Customs Tariff Heading (hereinafter, ‘CTH’) 85169000. However, the Customs Department has charged the goods under the above BoEs under CTH 85168000.

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The Petitioner has got the goods released after paying the Customs Duty under protest. However, the grievance of the Petitioner is that a speaking order has not been passed till date. The Court on the last date of hearing in W.P.(C) 6289/2025 i.e., 13th May, 2025 had directed the Sr. Standing Counsel (SSC) appearing for the Department to seek instructions in this regard.

It was argued that there were certain earlier consignments of identical goods, which were imported by the Petitioner, which were also classified incorrectly and were provisionally released.

It was submitted that a Show Cause Notice has been issued on 15th January, 2025, in that regard, to which a reply is yet to be filed. In the said Show Cause Notice, the question that has to be adjudicated is whether the goods would fall under Tariff heading CTH 85168000 or Tariff Heading CTH 85169000.

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Considering the fact that the issue raised in both the proceedings are same and the goods involved are also identical, the adjudication of the Show Cause Notice dated 15th January, 2025 shall bind the earlier bills of entry as also the set of present bills of entry, the court permited the Petitioner to file a reply within thirty days to the Show Cause Notice dated 15th January, 2025 bringing all the facts on record in respect of the earlier and the present bills of entry.

A division bench of Justice Prathiba M. Singh and Justice Rajneesh Kumar Gupta held that the Adjudicating Authority shall comprehensively adjudicate the matter in respect of all the bills of entry and pass one comprehensive order. It is made clear that if the Petitioner does not file a reply to the SCN dated 15th January, 2025, within thirty days, the right to file the reply shall automatically stand closed without any further opportunity.

To Read the full text of the Order CLICK HERE

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