9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (8) TMI 1639 - AT - CustomsJurisdiction - proper officer to issue SCN - power of D.R.I. Officers to act as proper officer for demand proceedings under the Customs Act 1962 - HELD THAT - It has been ruled by Hon ble Delhi High Court in the case of Mangali Impex Ltd. Vs. Union of India 2016 (5) TMI 225 - DELHI HIGH COURT that the D.R.I. Officers are not competent to issue the show cause notice for the period prior to 08.04.2011. In similar such cases various Benches of the Tribunal such as Delhi Chennai Calcutta have set aside the impugned orders and remanded the matter to the original authority for deciding the issue of jurisdiction and thereafter to decide on the merits of the case upon pronouncement of the judgment by the Hon ble Supreme Court in the case of Mangali Impex. Matters are remanded to the Original Authority for deciding the issues involved in the present appeals - appeal allowed by way of remand.
Issues:
Jurisdiction of D.R.I. Officers to issue show cause notice under the Customs Act, 1962 for imports made prior to April 2011. Analysis: The judgment addresses the issue of jurisdiction of D.R.I. Officers to act as the 'proper officer' for demand proceedings under the Customs Act, 1962 for imports made before April 2011. The Hon'ble Delhi High Court ruled in the case of Mangali Impex Ltd. Vs. Union of India that D.R.I. Officers are not competent to issue show cause notices for the period prior to 08.04.2011. Various benches of the Tribunal, including Delhi, Chennai, and Calcutta, have set aside impugned orders and remanded the matters to the original authority pending the judgment by the Hon'ble Supreme Court in the case of Mangali Impex. The Tribunal referred to the case of M/s. HR Electronics Vs. Commissioner Of Customs, New Delhi, highlighting the preliminary issue of jurisdiction regarding the D.R.I. Officers' authority to issue show cause notices under the Customs Act. The judgment further discusses the amendments made to the provisions of section 28 of the Customs Act, 1962, post the Hon'ble Supreme Court's decision in the case of Commissioner of Customs Vs. Sayed Ali. The Finance Act, 2011 amended section 28, and Notification No.44/2011-Cus (NT) was issued to appoint Additional Director General, DRI as the 'proper officer' from July 6, 2011, onwards. Subsequently, sub-section 11 was inserted under section 28 with retrospective effect, assigning proper officer functions to various DRI officers. However, conflicting decisions arose from different High Courts, leading the matter to the Hon'ble Supreme Court, which stayed the Delhi High Court's judgment pending further proceedings. The judgment also references the case of BSNL Vs. UOI, where the High Court of Delhi granted liberty to the petitioner to challenge the notice issued by DRI based on the outcome of appeals filed by the UOI in the Supreme Court against the judgment in the case of Mangali Impex Ltd. Considering the totality of facts and circumstances, the Tribunal set aside the impugned orders and remanded the matters to the original adjudicating authority to decide the jurisdiction issue post the Supreme Court's decision in the Mangali Impex case, ensuring the assessee's right to be heard. The status quo was to be maintained until a final decision was reached.
|
