Without Acknowledgement or Returned Cover from Customs Dept, Assessee’s Statement on Date of Receipt of Order Prevails: Madras HC [Read Order]
The court held that since Customs could not produce proof of service through acknowledgement or returned cover, the benefit of doubt must rest with the assessee
Customs Dept
Customs Dept
The Madras High Court has ruled that in the absence of acknowledgement or returned cover evidencing service of the customs adjudication order by the customs dept, the assessee’s statement regarding the date of receipt must be accepted for computing the limitation period for filing an appeal.
Jawath Ali Mohamed Aharib, challenged the order of the Commissioner of Customs (Appeals) dated 20 September 2017, which dismissed his statutory appeal as time-barred. The dismissal was later upheld by the Principal Commissioner (Revision Application), Ministry of Finance, by order dated 19 July 2022.
The petitioner contended that he received the adjudication order only on 16 August 2017, and that his appeal filed on 28 August 2017 was well within the limitation period.
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Justice Abdul Quddhose, hearing the matter, noted that despite directions, the Customs Department was unable to produce either the postal acknowledgement card or a returned cover to prove service of the order. The Court observed that under such circumstances, the benefit of doubt must go to the assessee.
“In view of the fact that there is no evidence produced by the respondents that the petitioner had received the order in original at an earlier date, it has to be presumed that the petitioner had received the order in original only on 16.08.2017 as claimed. If that be so, the appeal filed on 28.08.2017 is well within limitation” said the bench.
The Court further noted that the Commissioner (Appeals) had dismissed the appeal solely on limitation grounds by disbelieving the petitioner’s statement, despite the absence of contrary evidence.
Accordingly, the High Court quashed the orders of both the Commissioner (Appeals) and the Revisional Authority and remanded the matter back for fresh consideration on merits and in accordance with law.
The appellate authority has been directed to pass final orders within three months from receipt of the Court’s order.
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