2017 (6) TMI 1348 - AT - Customs

Jurisdiction - power of DRI to issue SCN - HELD THAT - Similar issue has come up before this Tribunal on many earlier occasions also. The Tribunal remanded the cases to the original adjudicating authority. Reliance placed in the case of M/S SHRI MAHINDERA DUGAR SHRI MAHENDER DUGAR AND PHOTOCOPING SERVICES VERSUS CC NEW DELHI (IMPORT GENERAL) 2017 (6) TMI 662 - CESTAT NEW DELHI where it was held that 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 Mangli Impex and then on merits of the case but by providing an opportunity to the assessee of being heard. Matter remanded to the original authority for a fresh decision - appeal allowed by way of remand.

Summary

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

Detailed Analysis:
The appellant filed appeals against order Nos. 49/2013 dated 06.09.2013. Despite the absence of the appellant, a request was made to decide the case on merit. The notice in this case was issued by DRI. The Department's counsel justified the notice issued by DRI and requested a decision on merit. The Tribunal noted that similar issues had arisen before and cases were remanded to the original adjudicating authority. The Tribunal referred to a recent case where the issue of jurisdiction of DRI officers to issue show cause notices under the Customs Act was discussed. The appellant cited a Supreme Court decision regarding the status of DRI officers as proper officers under Section 2(34) of the Customs Act, 1962. The Tribunal noted amendments to Section 28 of the Customs Act, 1962 post the Supreme Court decision. A notification was issued assigning the functions of proper officer to various officers, including the Additional Director General, DRI. Subsequently, a subsection was inserted assigning proper officer functions to DRI officers with retrospective effect. The issue of DRI officers' jurisdiction to issue show cause notices was also discussed in various High Court cases with conflicting decisions. The matter eventually reached the Supreme Court, which granted a stay on the Delhi High Court judgment. The Tribunal considered a Delhi High Court case where the notice was issued by DRI and granted liberty to the appellant to challenge based on the outcome of appeals filed in the Supreme Court. Following the Delhi High Court's decision, the Tribunal set aside the impugned order and remanded the matter to the original adjudicating authority to decide the jurisdiction issue after the Supreme Court's decision in the Mangli Impex case and then on the merits of the case, ensuring the appellant's right to be heard. The status quo was to be maintained until a final decision was reached.

In conclusion, the Tribunal remanded the matter to the original authority for a fresh decision, following the decisions and principles laid down in the various court cases and pending Supreme Court judgment.