Legal principle

Once an adjudicating authority passes its final order on a show cause notice it becomes functus officio and cannot pass a further order on the same findings, and an order made without jurisdiction is open to challenge under Article 226 despite an alternative statutory appeal.

Court decision

The writ petition was allowed and the impugned order dated 10.01.2014 was set aside; the court held that the Commissioner of Customs became functus officio upon passing the adjudication order dated 18.11.2013 and could not pass the later suspension order. Because the impugned order suffered from lack of jurisdiction, the court entertained the petition under Article 226 despite the alternate remedy of appeal under Regulation 13(2). The respondents were left free to take recourse to any appropriate remedy otherwise available, and a copy of the order was directed to be placed before the Central Board of Excise and Customs.

Facts

TNT India Private Limited, a courier company, was served a show cause notice dated 15.01.2013 (along with importer Mr P.K. Tiwari, whom even the respondents treated as non-existent) alleging a bogus importer name and address, misdeclaration of the consignment's description and value to evade customs duty, unclaimed seized goods, failure to present the goods for examination, and breach of Regulations 12(iii) and (iv) of the Courier Imports and Exports (Electronic Declaration and Processing) Regulations, 2010; the notice proposed penalty under Section 112(a), Customs Act, 1962 and revocation of registration under Regulation 13 of the 2010 Regulations. By adjudication order dated 18.11.2013, the Commissioner imposed a penalty of Rs. 1 lakh on the petitioner under Section 112(a) and a Rs. 5 lakh penalty on the non-existent importer, and ordered confiscation of goods valued at Rs. 74,97,500/- vesting in the Central Government, with perishables to be disposed of within a month under Section 110(1A). Nearly two months after adjudication, the respondents passed the impugned order dated 10.01.2014, suspending the petitioner's registration pending revocation, recording the very same findings as the adjudication order. The petitioner's appeal against the adjudication order was pending before the Tribunal, and respondent no.2 had not appealed that order.

Key provisions

• Section 112(a), Customs Act, 1962 — Penalty for improper importation of goods
• Regulation 13, Courier Imports And Exports (Electronic Declaration And Processing) Regulations, 2010 — Suspension or revocation of registration of authorised courier
• Regulation 12(iii), Courier Imports And Exports (Electronic Declaration And Processing) Regulations, 2010 — Obligations of Authorised Courier