2017 (10) TMI 1610 - AT - Customs

Jurisdiction - SCN issued by DRI - Proper Officers to issue SCN or not - HELD THAT - It may be mentioned that recently, the Hon'ble High Court of Delhi in the case of BHARAT SANCHAR NIGAM LIMITED VERSUS UNION OF INDIA ORS 2017 (6) TMI 688 - DELHI HIGH COURT has dealt with the identical issue where the notice was also issued by DRI. The Hon'ble High Court of Delhi has considered the judgment in the case of M/S MANGALI IMPEX LTD., M/S PACE INTERNATIONAL AND OTHERS VERSUS UNION OF INDIA AND OTHERS 2016 (5) TMI 225 - DELHI HIGH COURT which is stayed by the Hon'ble Supreme Court in UNION OF INDIA VERSUS MANGALI IMPEX LTD. 2016 (8) TMI 1181 - SC ORDER . Finally the Hon'ble High Court has granted liberty to the petitioner by observing that petitioner is permitted to review the challenge depending on the outcome of the appeals filed by the UOI in the Supreme Court against the judgment of the Court in the case of MangLi Impex Ltd. T he matter is 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. Till the final decision, the status quo will be maintained - the appeals are allowed by way of remand.

Summary

Issues: Jurisdiction of DRI officers to issue notice under Customs Act, 1962

In this judgment, the primary issue revolves around the jurisdiction of Directorate of Revenue Intelligence (DRI) officers to issue notices under the Customs Act, 1962. The appellant- assessee contended that DRI officers were not proper officers as per the Customs Act, citing a Supreme Court decision. The subsequent amendment to section 28 of the Customs Act in 2011 empowered Additional-Director General, DRI as a 'proper officer.' However, conflicting decisions arose from various High Courts regarding the retrospective effect of this amendment. The matter eventually reached the Supreme Court, which granted a stay on the Delhi High Court's judgment. Another High Court case granted liberty to review the challenge based on the Supreme Court's decision. In light of these legal developments, the Tribunal set aside the impugned order and remanded the matter to the original adjudicating authority to first decide the jurisdiction issue post the Supreme Court's decision and then proceed on the merits, ensuring the assessee's right to be heard. The status quo was to be maintained until the final decision, and both appeals were allowed by way of remand.