2023 (8) TMI 1397 - HC - Customs

Jurisdiction - power of designated officer to issue the show cause notice - exercise of powers under Section 97 of the Finance Act - HELD THAT - The Petitioner needs to canvas such legal position as asserted in the present proceedings before the adjudicating officer which would certainly take into consideration all such contentions including law laid down by the Supreme Court in the case of Canon India Pvt. Ltd. Vs. Commissioner of Customs 2021 (3) TMI 384 - SUPREME COURT and pass appropriate orders on the show cause notice. It is observed that insofar as the legal contentions as raised by the Petitioner in regard to the interpretation Section 97 of the Finance Act is concerned, as to whether any authority/power is vested with the designated officer to issue show cause notice, can also be gone into in the adjudication of the proceedings of the show cause notice. The petition is accordingly disposed of directing the Respondents to adjudicate the show cause notice as expeditiously as possible and in any event within a period of three months from today. As the show cause notice is issued about four years back and there cannot be any further delay on such adjudication.

Summary

Issues involved:
The legality of the show cause notice dated 1st October 2019, the jurisdiction of the designated officer to issue the notice, the retroactive validation of actions under Section 97 of the Finance Act, and the validity of certain notifications empowering the issuance of the notice.

Summary:

Legality of Show Cause Notice:
The Petitioner challenged the show cause notice dated 1st October 2019, arguing that the officer lacked jurisdiction to issue it. The Respondent Revenue contended that the legality of the notice issuance is covered by a Supreme Court decision and that the adjudicating officer would consider this legal position. The court directed the Petitioner to present these legal arguments before the adjudicating officer for consideration, who would then make appropriate decisions on the notice.

Retroactive Validation under Finance Act:
The Petitioner raised concerns regarding the retroactive validation of actions under Section 97 of the Finance Act to issue the show cause notice. The court noted that these legal contentions could be addressed during the adjudication process. The court kept open all contentions of the Petitioner, including those related to the interpretation of Section 97, to be examined during the adjudication of the show cause notice.

Validity of Notifications:
The Petitioner sought a declaration regarding the legality of certain notifications (Notification No.40/2012 and Notification No.17/2002) empowering the issuance of the impugned show cause notice. The court directed the Respondents to adjudicate the show cause notice promptly within three months, considering all legal contentions raised by the Petitioner. The court emphasized the need for expedited adjudication due to the significant delay in the issuance of the notice.

Conclusion:
The court disposed of the petition, instructing the Respondents to adjudicate the show cause notice expeditiously. All contentions raised by the Petitioner were expressly kept open for consideration during the adjudication process. No costs were awarded in this matter.