Service of Customs Notices, Communications and Orders to be made through Email and on Common Portal, Alongside Traditional Methods: Delhi HC [Read Order]

In a landmark judgment, the Delhi High Court pointed at the need for modernizing the methods of serving customs notices, communications, and orders. The decision came in response to a writ petition filed against the Assistant Commissioner of Customs and others, challenging the non-receipt of a show cause notice ( SCN ) and subsequent ex-parte proceedings.

The petitioner, Bonanza Enterprises, alleged that it had not received the SCN dated August 26, 2022, which formed the basis of an Order-in-Original imposing penalties and recovery of duty drawbacks worth ₹2.39 crore.

The Customs Department had attempted service through registered post and displayed the notice on the department’s notice board, but it failed to reach the petitioner. The petitioner contended that this lapse in communication denied it the opportunity to present its case.

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The court, presided over by Justice Prathiba M. Singh and Justice Amit Sharma, highlighted the importance of adopting email and the common portal for serving notices. Referring to Section 153 of the Customs Act, the court observed that while traditional methods like registered post and notice board display are prescribed, modern modes such as email and uploading notices on the common portal are explicitly allowed under subsections 153(c) and 153(ca). However, these were not utilized in the present case.

The court noted that reliance solely on traditional methods often results in delays and procedural lapses, as seen in this case. The failure to serve notices through email or upload them to the common portal led to unnecessary delays and ex-parte proceedings. The court emphasized that adopting digital communication methods could prevent such situations in the future.

The court quashed the impugned Order-in-Original and directed the Customs Department to issue a fresh SCN to the petitioner through email and upload it on the common portal.

The petitioner was thus granted four weeks to reply to the SCN, followed by a hearing. The Customs Department was instructed to adjudicate the matter within three months.

The court ordered the Chairman of the Central Board of Indirect Taxes and Customs (CBIC) to ensure compliance with the mandate of Section 153 of the Customs Act for serving notices via email and the common portal.

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