SCN and OIO under Customs not Served to Tapioca Exporter: Madras HC Grants Opportunity for Hearing and Production of BRCs or CA Certificate [Read Order]
The Court observed that before taking coercive action or concluding non-compliance, authorities must ensure that proper notice is served.

The Madras High Court has quashed an ex-parte order passed by the Customs Department. It found that the order-in-original and show cause notice was served to the exporter.
The court allowed the petitioner a fresh opportunity to submit documentary evidence, including Bank Realization Certificates (BRCs) or Chartered Accountants Certificate, to substantiate compliance with export obligations.
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The petitioner, a leading tapioca starch exporter, approached the Court contending that it had never received a show cause notice prior to the issuance of the impugned order, nor was the order itself served.
The issue came to light only after an alert was issued by customs authorities stopping the company’s exports. The petitioner discovered that the order had been issued at an outdated address one that had long been changed and duly notified under Form 18 in compliance with Section 146 of the Companies Act, 1956.
During the hearing, the Customs Department admitted that both the show cause notice and the final order had been returned unserved, having been sent to the old address obtained from shipping bills.
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The petitioner argued that it was deprived of an opportunity to respond and had the necessary BRCs to prove that export obligations had been fulfilled.
Justice Abdul Quddhose observed that the impugned order was in violation of the principles of natural justice. The Court observed that before taking coercive action or concluding non-compliance, authorities must ensure that proper notice is served.
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As the petitioner now possessed the required BRCs and other documents, the Court considered it appropriate to remand the matter for fresh adjudication.
Accordingly, the bench quashed the impugned order and directed the first respondent to re-adjudicate the case after affording a personal hearing to the petitioner. The company was also permitted to submit its BRCs or Chartered Accountant certificates in support of its case. The final decision is to be rendered within twelve weeks from the receipt of the court order.
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