2017 (8) TMI 1677 - AT - Customs

Jurisdiction - proper officer to issue SCN - Notice issued by DRI - 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. By following the ratio laid down by 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 as well as by considering totality of facts and circumstances we set aside the impugned order and remand the matter 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 UNION OF INDIA VERSUS MANGALI IMPEX LTD. 2016 (8) TMI 1181 - SC ORDER 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 appeal filed by the assessee is allowed by way of remand.

Summary

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

Analysis:
The present appeals were filed against an order dated 27/02/2015. Both parties agreed that the notice was issued by the DRI, leading to the impugned orders. The Tribunal noted that similar issues had been addressed in various cases recently. Referring to a specific case, it was observed that the jurisdictional issue regarding DRI officers' authority to issue show cause notices under the Customs Act emerged. The appellant argued that DRI officers were not proper officers as per a Supreme Court decision. Amendments to the Customs Act were made post the Supreme Court's ruling, empowering DRI officers to issue demand notices. Subsequent amendments assigned proper officer functions to DRI officers with retrospective effect. Conflicting decisions by different High Courts led the matter to the Supreme Court, which granted a stay on the Delhi High Court's judgment. The Tribunal, following the Delhi High Court's decision in a similar case, set aside the impugned order and remanded the matter to the original authority to decide the jurisdiction issue post the Supreme Court's decision in a related case and then proceed on merits, ensuring the appellant's right to be heard.

In conclusion, the Tribunal allowed the appeal by remanding the matter for a fresh decision in line with the precedent set by the Delhi High Court.