2003 (12) TMI 499 - AT - Central Excise

Summary

Issues: Jurisdiction of show cause notice issued by DRI officials

Analysis:
The appellant challenged the impugned order, arguing that the show cause notice issued by the Deputy Director, Directorate General of Central Excise Intelligence, lacked jurisdiction. The appellant's counsel referenced previous Tribunal decisions in the cases of CC, Bombay v. Poona Roller and Bakeman's Home Products Pvt. Ltd. v. CC, Bombay, which held that show cause notices by DRI should only be issued by the Collector of Customs on the Board's instructions. However, a contrasting judgment in CC, Mumbai-I v. Padma Nutrients Pvt. Ltd. stated that DRI officials have the authority to issue show cause notices under the Commissioner of Customs. The Tribunal acknowledged the conflicting decisions and noted that the appellant had established a prima facie case in their favor based on the two precedent decisions that found DRI-issued notices to be without jurisdiction.

Decision:
The Tribunal granted an unconditional stay petition in favor of the appellant due to the prima facie case established regarding the jurisdiction of the show cause notice issued by DRI officials. Additionally, recognizing the importance of the issue and the conflicting decisions, the Tribunal scheduled the main appeal for expedited hearing on an out-of-turn basis, setting the hearing date for 24th January 2004. This decision was made to address the conflicting precedents and the significance of the jurisdictional issue raised by the appellant.