Commr.Of Customs vs M/S Ajay Kumar & Co

1. Challenge in this appeal is to the order passed by the Punjab &

Haryana High Court upholding the order of the Customs, Excise & Service

Tax Appellate Tribunal, New Delhi (in short 'CESTAT') dismissing the

appeal filed by the appellant.

2. Background facts in a nutshell are as follows:

Appellant acquired and/or purchased transferable Duty Entitlement

Pass Book (in short the `DEPB') including licenses dated 6.11.2000 and

20.11.2000 issued in the name of M/s. Parker Industries. By show cause

notices dated 30.5.2002, 12.6.2002 and 26.7.2002 appellant was called upon

to show cause why an amount of Rs.12,45,174/- could not be recovered and

demanded in terms of proviso to Section 28(1) of the Customs Act, 1962 (in

short the 'Act'). Noticee denied the allegations.

However, Commissioner of Customs, Amritsar confirmed the demand

along with interest and penalty. Same was held to be jointly payable by the

original license holder and licensee. It was held that goods were liable in

confiscation under Section 111 of the Act.

The Tribunal allowed the appeal by respondent holding the demand to

be barred by limitation. The High Court upheld the view.

3. In this appeal challenge is to the aforesaid conclusions. Learned

counsel for the respondent pointed out that no role was ascribed to it in the

show cause notice.

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4. It is seen that in view of the fact that in the show cause notices, there

was no reference to the alleged infraction of M/s. Parker Industries, the

transferor of the license in question. The judgments of the CESTAT and the

High Court do not suffer from any infirmity to warrant interference. It is to

be noted that in Commissioner of Customs (Import) Bombay v. M/s. HICO

Enterprises [2008 (11) SCC 720] similar view was taken. The appeal is

dismissed.

..........................................J. (Dr. ARIJIT PASAYAT)

.........................................J. (Dr. MUKUNDAKAM SHARMA)

New Delhi, May 8, 2009

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