Customs Dept Cannot Run Parallel Proceedings By Passing Penalty Order While Challenge To SCN Is Pending Before Court: Delhi HC

The Delhi High Court held that the Customs Department cannot run parallel proceedings by issuing a penalty order while a challenge to the show-cause notice (SCN) is pending before a court. The ruling came in response to a petition challenging the penalty imposed by Customs despite the ongoing litigation regarding the SCN. The Court noted that such actions would undermine the judicial process and create confusion. It stressed that the Customs Department must wait for the court’s verdict on the SCN before taking any further punitive actions, ensuring a fair and transparent legal process.