Law: Customs Act, 1969

Section: 32A,32(3),32(4),179

Customs Act (IV of 1969)--Ss.32A, 179-Customs Duty not levied due to any inadvertence, error or misconstruction, or short-levied or erroneously refunded- Mandatory issuance of show-cause notice to importer of such goods erroneously assessed-Scope-Petitioner impugned demand notices for payment of customs duty on goods, which per Department had been erroneously given benefit of a “Free Trade Agreement”-Validity- Admittedly no show-cause notice was issued to petitioner nor any determination was made by any appropriate officer before issuance of impugned demand notices, and without show-cause notice to petitioner such notices were in clear violation of Ss.32(3) 32(4) of Customs Act, 1969-Impugned demand notices were set aside-Constitutional petition was allowed, accordingly. ORDER: ABID AZIZ SHEIKH, JUSTICE:---.--- Through this constitutional petition, petitioner has challenged demand notices bearing Nos.234 and 235 dated 19.8.2015 issued under section 32(3) of the Customs Act, 1969 (Act). 2. Relevant facts are that petitioner is engaged in import of Betel Leaves under Free Trade Agreement (FTA) from Colombo, Sri Lanka. The petitioners imported goods were cleared by custom authorities after examination of documents and benefit of exemption under FTA was also allowed. After clearance of goods, respondent No.6 has issued impugned demand notices under section 32(3) of the Act for payment of Rs.44405/- and Rs.65858/- on the ground that exemption under FTA was not applicable. The petitioner being aggrieved has filed this constitutional petition. 3. Learned counsel for the petitioner argued that neither any show- cause notice was issued nor any assessment order was passed before issuing demand, notices by respondents. He further submits that unless amount is determined after show-cause notice, recovery cannot be made directly. 4. Learned counsel for the respondents submits that benefit of FTA was not applicable to the imports of the petitioner and said benefit of FTA was inadvertent extended. He submits that in the circumstances, demand notices for recovery of aforesaid amounts were lawfully issued under section 32(3) of the Act. 5. I have heard learned counsel for the…

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