Whether cart can be put after the horse- how without dealing with the facts, the operative part of the order can be recorded? Bombay High court comes down heavily on Customs officer and sets aside the order in a landmark decision pronounced on 27/10/2020

The Bombay High court in the case of The Supreme Industries Limited Vs The CBIC & Another in WP(St) No 92578 of 2020 was dealing with a matter where the price of an imported material was doubted based on the quotation on S&P Global Platts and an order was passed rejecting the valuation declared by the importer and fine and penalty was imposed u/s 125 and 112 of the Customs Act. From the order passed it was seen that though the assessment was done initially but the order was issued only after 2 weeks and the manner in which the order was passed, it appeared as if there has been some thing unusual in the dates of passing the order. There were several error also in the affidavit which was filed by the Proper officer before the High court. On these facts, the Court observed It is only the date on which the order is signed, is the date on which the order is passed. Revenue authority cannot at their own whim and fancy, split an order viz. first pass the operative part of the order without any discussion or finding or reasons and then pass the speaking order with discussion and findings and conveniently choose dates. An adjudication order must be a speaking order which speaks for itself. It further goes on to say that a good adjudication order is expected to stand the test of legality, fairness and reasons at higher appellate forums and that such order should contain all the details of the issue, clear findings and a reasoned order. The decision of the Supreme Court in the case of State of Punjab v/s. Bandip Singh and others reported in (2016) 1 SCC 724 is relevant. It has been held by the Supreme Court that every decision of an administrative or executive nature must be a composite and self- sustaining one, in that it should contain all the reasons which prevailed on the official taking the decision to arrive at his conclusion.
The order was ultimately set aside with a direction to pass fresh speaking order.

A landmark decision which will be relevant in all streams of law dealing with passing of order.


Ramesh Patodia
29-10-2020