Calcutta High Court Quashes Penalty Imposed By Customs Dept. Without Enquiry & Adjudication

The petitioner/assessee has challenged the order passed by the Commissioner of Customs which imposed several punishments including Punishment No. V, imposing a penalty of Rs.1 crore under Section 112 (b) of the Customs Act on account of some past offences without initiating any proceeding and any adjudication order.

The court while criticising the act of the department said that how an authority like a Commissioner can pass order without initiating any proceeding and any adjudication order and it shows total non-application of mind on his part since order of punishment on the offence is not a part of subject matter of the adjudication proceeding.

The court has held that the impugned order is bad, in total non-application of mind and on the face of it, is not sustainable in law; and accordingly, punishment order imposing penalty for alleged past offence without any enquiry and adjudication, is set aside.

Counsel appearing on behalf of the petitioner, submitted that petitioner may file a statutory appeal against the rest of the order in accordance with law.

The court, after considering the prayer of the petitioner, stated that no order has been passed on all other punishments in the adjudication order, and petitioner will be at liberty to file a statutory appeal.

Case Title: Dharanidhar Ghosh Vs. Union of India

Case Citation: 2022 LiveLaw (Cal) 71

Counsel For Appellant: Advocates Arijit Chakrabarti, Nilotpal Chowdhury, and Prabir Bera

Counsel For Respondent: Advocate Somnath Ganguli, Sukalpa Seal and Amal Kumar Datta

Click Here To Read/Download Order