Pink Floyd-inspired Gujarat HC order quashes 15-year-old customs notices

The Gujarat High Court quashed 15-year-old customs notices against Rohan Dyes, citing Pink Floyd lyrics to highlight the delay, ruling that the excessive lapse of time invalidates adjudication

The Gujarat High Court quashed two long-pending show cause notices issued by the Customs Department in 2010 and 2011 against a company engaged in manufacturing and exporting dyes and chemicals. The court highlighted the excessive delay by quoting a verse from the 1973 Pink Floyd song “Time," LiveLaw reported.

 

The division Bench of Justices Bhargav Karia and DN Ray delivered its order on March 7, which was uploaded on March 25. Addressing the prolonged pendency, the division Bench of Justices Bhargav Karia and DN Ray referenced lyrics penned by Roger Waters from the British rock band’s album The Dark Side of the Moon:  

 

 

“And then one day you find ten years have got behind you…  

No one told you when to run, You missed the starting gun…”  

 

This remark was made in a 12-page order responding to a special civil application filed by Rohan Dyes and Intermediates Limited, which sought the quashing of the two show cause notices that had been left unadjudicated for nearly 15 years.  

 

The case

 

The case dates back to 2009 when Rohan Dyes and Intermediates Limited exported "synthetic organic dyes acid black-210" under two shipping bills on September 14, 2009 from Ahmedabad’s Inland Container Depot. The export was made under the duty entitlement pass book (DEPB) scheme.

 

However, suspecting misdeclaration, the Directorate of Revenue Intelligence (DRI) conducted a search at the company’s premises on September 15, 2009. The investigation later reported that one of the shipments contained "acid black-234" instead of the declared "acid black-210," LiveLaw reported.

 

Following this, the DRI issued a show cause notice on March 8, 2010, alleging wrongful DEPB benefits and proposing confiscation of goods. The company was also directed to deposit ₹75 lakh as a pre-deposit amount for "protection of revenue interest." A second notice, issued on November 3, 2011, sought the recovery of ₹1.23 crore in DEPB benefits availed between April 2005 and April 2010, along with applicable interest and penalties.  

 

The company’s defence

 

Responding to these notices on June 15, 2012, the company denied any misdeclaration, arguing that Acid Black 210 and Acid Black 234 were chemically identical with no substantial difference in composition or structure.  

 

Despite hearings held by the Customs Department in 2012, no final decision was reached, leaving the matter unresolved. As the issue lingered, the company approached the Gujarat High Court in 2020, seeking relief.

 

Separately, in an order dated July 10, 2013, the Joint Director General of Foreign Trade (Ahmedabad) ruled that the company had rightfully availed DEPB benefits, except for Acid Black 234 and Orange 6. It ordered a recovery of ₹11,68,682 and an additional ₹96,316 in interest, which was duly paid by the company, the news report said.

 

Representing the company, advocate Himanshi Patwa contended that the Customs authorities had failed to adjudicate the show-cause notices for an "unreasonably long period," despite related proceedings being concluded by the foreign trade office.  

 

Hearing the matter on March 7 this year, the court observed that the Joint Director General of Foreign Trade’s notice was largely similar to the show cause notices issued by the Customs authorities, LiveLaw reported.

 

Citing the excessive delay, the court ruled: "...this court has no hesitation in holding that due to an inordinately long lapse of time, the impugned show cause notices dated March 8, 2010 and November 3, 2011 can no longer remain pending for adjudication and must be quashed and set aside on that score alone."