2023 (9) TMI 1413 - HC - Customs

Jurisdiction - power of DRI to issue the impugned SCN - It is contended that such an action on the part of the DRI would be contrary to the binding decision of law laid down by the Supreme Court in the case of M/S CANON INDIA PRIVATE LIMITED VERSUS COMMISSIONER OF CUSTOMS 2021 (3) TMI 384 - SUPREME COURT - HELD THAT - Reliance placed in the case of KULODAY PLASTOMERS PVT. LTD., THROUGH SHRI. RAMSWAROOP GUPTA VERSUS THE UNION OF INDIA, THROUGH ITS SECRETARY, MINISTRY OF FINANCE ORS. 2023 (8) TMI 1397 - BOMBAY HIGH COURT where it was held that We may also observe 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. Respondents waive service - So far as interim reliefs are concerned, the show cause notice is pending adjudication.

Summary

Issues involved:
The jurisdiction of the Directorate of Revenue Intelligence (DRI) to issue a show cause notice challenged under Article 226 of the Constitution of India based on the binding decision of law laid down by the Supreme Court in the case of M/s. Canon India Pvt. Ltd. vs. Commissioner of Customs AIR 2021 SC 1699.

Judgment Details:

Issue 1: Jurisdiction of DRI to Issue Show Cause Notice
The petition challenges a show cause notice dated 8th January 2016 issued by the DRI, Lucknow Zone Unit, contending that the DRI lacks jurisdiction to issue the notice. The petitioner argues that this action by the DRI goes against the decision of the Supreme Court in M/s. Canon India Pvt. Ltd. vs. Commissioner of Customs AIR 2021 SC 1699. The court, referring to previous similar cases, directs the Respondents to adjudicate the show cause notice expeditiously within three months, keeping all contentions of the Petitioner open for consideration during the adjudication process.

Key Phrases:
- Challenge to show cause notice jurisdiction
- Supreme Court precedent invoked
- Previous cases referred for context
- Adjudication directed within three months
- All contentions of Petitioner to be considered

Conclusion:
The High Court of Bombay admitted the petition challenging the jurisdiction of the DRI to issue a show cause notice based on the Supreme Court precedent. The court directed the Respondents to expedite the adjudication process while keeping all contentions of the Petitioner open for consideration. The judgment emphasizes the importance of adhering to legal precedents and ensuring a timely resolution of the matter at hand.