2017 (8) TMI 1522 - AT - Customs

Jurisdiction - power of Commissioner of Customs (Prev.) Jodhpur to issue SCN - Competent authority or not - Held that - The similar issues have been dealt with in various cases by the Tribunal recently - It is held that the matters have to be remanded back to the original authority for a decision after the legal issue is settled by the Hon ble Supreme Court in the case of Mangli Impex vs. Union of India 2016 (5) TMI 225 - DELHI HIGH COURT - matter remanded for fresh consideration.

Summary

Issues:
Jurisdiction of DRI officers to issue show cause notice under the Customs Act.

Analysis:
The appeal was filed against an order passed by the Commissioner of Customs, Jodhpur. During the arguments, it was agreed that the notice in question was issued by the Commissioner of Customs (Prev.) Jodhpur, who was not the competent authority as per the ratio established by the Hon'ble High Court in a specific case. The Tribunal noted that similar issues had been addressed in various cases recently. It was held that matters should be remanded back to the original authority for a decision after the legal issue is settled by the Hon'ble Supreme Court. The Tribunal referred to a specific case where a preliminary plea was raised regarding the jurisdiction of DRI officers to issue show cause notices under the Customs Act. The appellant argued that DRI officers were not proper officers as per a Supreme Court decision. Subsequent amendments and notifications were discussed, empowering DRI officers to issue demand notices under the Customs Act.

The Tribunal highlighted conflicting decisions by various High Courts on the issue, leading to the matter being sub-judice before the Supreme Court. Reference was made to a case where the High Court granted liberty to review the challenge depending on the outcome of appeals filed in the Supreme Court. Following the ratio laid down by the High Court of Delhi in a specific case, the Tribunal set aside the impugned order and remanded the matter to the original adjudicating authority to first decide the jurisdiction issue after the Supreme Court's decision and then proceed on the merits of the case, ensuring the assessee's right to be heard. The status quo was to be maintained until the final decision. In line with this decision, the matter was remanded for a fresh decision as agreed upon by both parties.

In conclusion, the Tribunal's judgment focused on the jurisdiction of DRI officers to issue show cause notices under the Customs Act. It delved into legal precedents, amendments, and notifications to establish the authority of DRI officers in such matters. The decision highlighted the need for clarity on jurisdictional issues and the importance of following legal procedures, especially in cases where conflicting decisions by different High Courts exist. The Tribunal's approach emphasized the significance of awaiting the Supreme Court's decision for a final resolution on the matter.