Sri Kalyan Export Pvt Ltd v. The Deputy Commissioner of Customs (Export)

O R D E R Mr. Rajendran Raghavan, learned Standing Counsel, accepts notice for the respondent.

¶2The petitioner challenges the order dated 18.01.2021 passed by the respondent under Rule 16 of the Customs and Central Excise Duties Drawback Rules, 1995, directing recovery of the drawback amount of Rs.3,39,856/-, together with applicable interest under Section 75A(2) of the Customs Act, 1962, and imposing a penalty of Rs.17,000/- under Section 117 of the said Act.

¶3According to the respondent, a show cause notice was issued to the petitioner calling upon him to explain why the drawback amount received by him should not be recovered for failure to produce proof of realisation of the export proceeds. Page Nos.3/5

¶4The petitioner contends that the show cause notice was never served upon him since his registered office had been shifted. Consequently, he was proceeded against ex parte and the impugned order came to be passed.

¶5Heard the learned counsel appearing on either side.

¶6The petitioner has categorically asserted that, owing to the shifting of his registered office, he did not receive the show cause notice. As no reply was submitted, the respondent proceeded ex parte and passed the impugned order on the basis of the available records. The petitioner further submits that he is in possession of all the necessary documents evidencing realisation of the export proceeds. In the circumstances, this Court is of the view that the impugned order has been passed in violation of the principles of natural justice. No prejudice would be caused to the respondent if the impugned order is set aside and the matter is reconsidered after affording the petitioner an opportunity of hearing.

¶7Accordingly, the writ petition is allowed and the following directions are issued:

(i) The impugned order dated 18.01.2021 passed by the respondent Page Nos.4/5 is hereby set aside;

(ii) The impugned order shall be treated as a show cause notice;

(iii) The petitioner shall submit his reply to the said show cause notice within a period of four weeks from the date of receipt of a copy of this order; and

(iv) Upon receipt of the petitioner's reply, the respondent shall afford the petitioner an opportunity of personal hearing and thereafter pass appropriate orders in accordance with law within a period of four weeks. No costs.

09.07.2026 Speaking / Non-speaking order Index : Yes / No mk To The Deputy Commissioner of Customs (Export) The Commissioner of Customs Sea Cargo, Custom House Rajaji Salai, Chennai-600 001. Page Nos.5/5 HEMANT CHANDANGOUDAR, J., mk

09.07.2026

Page Nos.1/5 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 09.07.2026 CORAM THE HONOURABLE MR.JUSTICE HEMANT CHANDANGOUDAR Sri Kalyan Export Pvt. Ltd., Represented by its Director Mr.R.R.Sri Kalyan Registered Office at 192/4, Iswarya Garden Sengodampalayam Villarasampatti (PO), Erode – 638 107. ... Petitioner vs. The Deputy Commissioner of Customs (Export) The Commissioner of Customs Sea Cargo, Custom House Rajaji Salai, Chennai-600 001. … Respondent Writ Petition filed under Article 226 of the Constitution of India seeking a writ of Certiorarified Mandamus, to call for the records pertaining to the impugned order No.79303/2021 dated 18.01.2021 issued by the respondent and quash the same as it has been passed without proper service upon the petitioner and in violation of the principles of natural justice and consequently, direct the respondent to conduct the assessment proceedings afresh by giving a reasonable opportunity to the petitioner. Page Nos.2/5 For Petitioner : Mr.L.Balasubramanian M/s.KNS Law Chamber For Respondent : Mr.Rajendran Raghavan Standing Counsel *****