2017 (7) TMI 1317 - AT - Customs

Jurisdiction - power of Directorate of Revenue Intelligence (DRI) to issue SCN - HELD THAT - 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 - reliance placed in the case of M/S DOABA STUD AGRICULTURE FARM SHRI YADVENDRA SINGH PARTNER VERSUS CC NEW DELHI (I G) 2017 (6) TMI 695 - CESTAT NEW DELHI . The impugned order set aside and matter remanded to the original adjudicating authority to first decide the issue of jurisdiction after the availability of Hon ble Supreme Court decision in the case of Mangali Impex Ltd. and then on merits of the case but by providing an opportunity to the assessee of being heard. Appeal allowed by way of remand.

Summary

Issues:
Appeals against orders of Commissioner of Customs, New Delhi.

Analysis:
The appeals were filed against orders passed by the Commissioner of Customs, New Delhi, based on notices issued by the Directorate of Revenue Intelligence (DRI). The main issue revolved around 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 the Customs Act, citing a Supreme Court decision. The Customs Act was subsequently amended to address this issue, empowering the Additional Director General, DRI, as a "proper officer" for issuing demand notices. However, conflicting decisions from various High Courts led the matter to the Supreme Court, which stayed the Delhi High Court's judgment. The Tribunal, following the Delhi High Court's decision in a similar case, set aside the impugned orders and remanded the matter to the original authority for a decision on jurisdiction after the Supreme Court's ruling, providing the appellant an opportunity to be heard.

In conclusion, the Tribunal allowed the appeals by way of remand, following the precedent set by the Delhi High Court and considering the evolving legal landscape regarding the jurisdiction of DRI officers. The matters were remanded for a fresh decision after the Supreme Court's ruling, maintaining the status quo until a final decision is reached.