Customs did not Issue or Produce SCN: CESTAT Rejects Appeal in Larsen & Toubro Misrepresentation Case [Read Order]

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Chennai, rejected an appeal filed by the Commissioner ofCustoms against Larsen & Toubro Ltd. as it observed that no notice was issued or produced during the proceedings.

The point that required clarity was whether a show cause notice was issued and served for determining the classification of imported goods from medical equipment.

Larsen & Toubro have previously contended that they were never issued any show cause notice in the appeal made to the Lower Adjudicating Authority. Before the Commissioner (Appeals), they submitted that the import took place in 2011 and the notice for personal hearing was received on 17.03.2015 which was barred by limitation.

The Commissioner found that the application of Section 28(2) was mis-applied and a show cause notice must be served in accordance with the law. However, the tribunal noted that this does not establish presence or absence of a show cause notice which is required to be established independently.

The CESTAT found that absence of notice clearly violates principles of natural justice which have been mentioned in Section 28(1) of the Customs Act. Therefore, the bench of Vasa Seshagiri Rao (Technical Member) and P. Dinesha (Judicial Member) dismissed the Revenue’s appeal and quashed the order passed by the Commissioner as there was no issuance of notice.

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