SCN Cannot Be Challenged Prematurely before Final Adjudication unless it Pertains to Jurisdiction or Lack of Authority: Madras HC [Read Order]

The Madras High Court dismissed the premature challenge made by the assessee to the Show Cause Notice (SCN) and directed the respondent authorities to adjudicate the matter after considering the assessee’s reply. The bench observed that SCN cannot be challenged prematurely unless it pertains to jurisdiction or lack of authority

In this case, the petitioner, S and T Plastic Machines Private Limited, had filed the writ petition before the High Court challenging the show cause notice dated 30.10.2024 issued by the Commissioner of Customs. It was claimed by the petitioner that the issue was pre-determined by the first respondent.

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The show cause notice (SCN) states that the vessel's entry inwards for the petitioner’s imported goods was recorded at 22:12 on 22.12.2023, while the e-gazette notification was digitally signed at 21:48:35 on the same day, which is 24 minutes earlier, and thus, the SCN alleges that anti-dumping duty applies in this case.

The petitioner contended that if the exact time of uploading the anti-dumping duty notification was revealed, they would not be liable for the duty, as the vessel's entry inwards occurred before the notification. They reiterated this claim in their reply to the show cause notice on 03.01.2025. However, before a final order could be passed, the petitioner approached this Court, alleging that the respondents predetermined the issue by claiming the notification was uploaded at 21:48 on 22.12.2023, while the vessel’s entry inwards was recorded at 22:12.

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The bench noted that the matter can only be decided after the respondents review the petitioner’s reply.

The High Court of Madras observed that “any show cause notice can be challenged only when the same is issued without authority under law or without jurisdiction or the issue has already been predetermined. However, without allowing the respondents to pass a final adjudication order based on the explanation submitted by the petitioner, the petitioner has approached this Court challenging the show cause notice.”

The bench, after going through the materials available on record, refused to accept the contention raised by the assessee that the issue had been predetermined by the respondents.

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The single bench of the High Court of Madras, comprising Justice Abdul Quddhose, noted that the only limited relief that can be granted to the petitioner in the writ petition was to direct the respondents to consider the reply dated 03.01.2025 submitted by the petitioner to the impugned show cause notice dated 30.10.2024 on merits.

To Read the full text of the Order CLICK HERE

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