HC nixes customs’ notice to APSEZ

Ahmedabad: The Gujarat high court has quashed a demand notice issued by the customs department to the Adani Port and Special Economic Zone (APSEZ) because the related documents went missing while shifting of department’s office and it did not act on the notice for 11 years.
While quashing the notice demanding Rs 25,03,414 from the company, the court said that the department did not take any action with regard to the notice and did not even inform APSEZ about the status of the notice for 11 years after issuing the notice.After so many years, the company cannot be expected to defend its case by gathering details merely for the fault of the authorities.
In this case, the customs issued Less Charge Demand Notice in August 2007 to APSEZ asking for Rs 25 lakh duty over certain goods temporarily imported by the company in 2004. The government policy granted 15% rebate on duty on re-export of these goods. The department claimed that the conditions for duty exemption was not fulfilled and prohibited the company from selling the goods in India.
The company replied to the notice in 2007 only, but it did not hear anything from the department in this regard later. In 2019, APSEZ moved the HC and sought quashing of the notice and submitted that it had fulfilled all duty exemption conditions.
When the court sought explanation from the department, it said that the joint commissioner of customs office at Mundra was upgraded to the office of principal commissioner. There was a shifting of the office and the documents related to the notice was never traced. It, however, told the court that the company ought to have approached the department first.