Call Book SCN Delay – HC Quashes 7-Year Drawback Notice

Case Details: JBS Exports Versus Union of India (2025) 30 Centax 161 (Guj.)

Judiciary and Counsel Details

• Bhargav D. Karia & D.N. Ray, JJ.
• Shri Harshadray A. Dave, for the Petitioner.
• S/Shri CB Gupta & Siddharth Dave with Chirayu Mehta, for the Respondent.

Facts of the Case

The petitioners were exporters who had received duty drawback benefits on their exported goods. The Customs Department later claimed that the drawback was wrongly granted due to misclassification, undervaluation, and short shipment of the goods. Accordingly, show cause notices were issued to recover the excess drawback amounts. Although the notices were issued within the permitted time limit, the Department took no further action. Instead, the notices were placed in the ‘call book’—an internal administrative list used to temporarily halt proceedings—without informing the exporters and without initiating adjudication for several years. The exporters approached the Gujarat High Court, arguing that this long delay and lack of communication was unfair and violated their right to timely resolution under the law.

High Court Held

The Hon’ble High Court held that even if the show cause notices were issued within the prescribed limitation period, they could not be allowed to remain pending indefinitely without justification. The Court observed that placing notices in the call book without informing the affected parties and without proceeding to adjudicate for years was a clear denial of natural justice. Referring to its earlier judgment in SJS International, the Court reaffirmed that the department cannot keep matters open-ended and avoid adjudication by administrative silence. Since the exporters were not informed and were left in a state of uncertainty, the Court quashed the notices and allowed the petitions.

List of Cases Cited

• ATA Freight Line (I) Pvt. Ltd. v. Union of India — (2022) 1 Centax 32 (Bom.) — Referred [Para 15]
• Collector v. Dhiren Chemical Industries — 2002 (139) E.L.T. 3 (S.C.) — Referred [Para 24]
• Commissioner GST and Central Excise v. Shree Baba Exports — 2023 (384) E.L.T. 246 (S.C.) = (2023) 3 Centax 279 (S.C.) — Referred [Para 15]
• Commissioner v. Vishal Exports Overseas Ltd. — 2007 (209) E.L.T. 331 (S.C.) — Referred [Para 22]
• Dhampur Sugar Mills Ltd. v. State of U.P. — (2007) 8 SCC 338 — Referred [Para 11]
• Gargip International v. Union of India — Special Civil Application No. 17255 of 2016, decided on 12-6-2017 by Gujarat High Court — Referred [Paras 18, 21]
• Godrej Sara Lee Ltd. v. Excise and Taxation Officer-Cum-Assessing Authority — 2023 (384) E.L.T. 8 (S.C.) = (2023) 3 Centax 49 (S.C.) — Referred [Para 11]
• Hind Steels Additional Commissioner (Export) — decided on 20-3-2014 — Referred [Para 21]
• ICICI Home Finance Company Ltd. v. Union of India — (2024) 20 Centax 390 (Bom.) — Referred [Para 15]
• ITC Limited v. Commissioner — 2019 (368) E.L.T. 216 (S.C.) — Referred [Para 18]
• M.M. Exports v. Zonal Director General of Foreign Trade — 2001 (133) E.L.T. 558 (Cal.) — Referred [Para 32]
• Paper Products Ltd. v. Commissioner — 1999 (112) E.L.T. 765 (S.C.) — Referred [Para 23]
• Pratibha Syntex Ltd. v. Union of India — 2013 (287) E.L.T. 290 (Guj.) — Relied on [Paras 16, 36]
• S.J.S. International v. Union of India — Special Civil Application No. 20484 of 2019, decided on 9-12-2021 by Gujarat High Court — Relied on [Paras 18, 21, 35, 37]
• Shree Baba Exports v. Commissioner — 2022 (381) E.L.T. 53 (P&H) — Referred [Para 15]
• State of H.P. v Gujarat Ambuja Cement Ltd. — AIR 2005 SC 3936 — Referred [Para 11]
• Union of India v. ATA Freight Line (I) Pvt. Ltd. — 2023 (73) G.S.T.L. 581 (S.C.) = (2023) 6 Centax 153 (S.C.) — Referred [Para 15]
• Union of India v. Kamlakshi Finance Corporation Ltd. — 1991 (55) E.L.T. 433 (S.C.) — Referred [Para 20]
• Union of India v. Vicco Laboratories — 2007 (218) E.L.T. 647 (S.C.) — Referred [Para 11]
• Vinod Electropating Works — decided on 19-11-2015 — Referred [Para 21]
• Vinod Electropating Works — decided on 3-2-2022 — Referred [Para 21]
• Vinod Electroplating Works v. Additional Commissioner (Export) — decided on 20-3-2014 — Referred [Para 21]

List of Departmental Clarification Cited

• C.B.E. & C. Circular No. 24/2011, dated 31-5-2011 [Para 27]
• Circular No. 1053/2/2017-CX [Para 23]