2017 (7) TMI 47 - AT - Customs

Jurisdiction - power of Directorate of Revenue Intelligence (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 - appeal allowed by way of remand.

Summary

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

Analysis:

Jurisdiction of DRI Officers:
The appeal in question challenges an order dated 28/05/2010, where it was agreed by both sides that the notice was issued by DRI. The Tribunal noted that similar issues have been addressed in various cases recently. The appellant contended that DRI officers were not proper officers under the Customs Act, citing a Supreme Court decision. Subsequently, amendments were made to the Customs Act to address this issue, empowering DRI officers to issue demand notices. However, conflicting decisions arose from different High Courts, leading the matter to the Supreme Court. The High Court of Delhi stayed its judgment pending the Supreme Court's decision in a related case. Following the High Court's guidance in a similar case, the Tribunal remanded the matter to the original authority to decide the jurisdiction issue after the Supreme Court's decision, allowing the appellant an opportunity to be heard and maintaining the status quo until a final decision is reached.

Conclusion:
The Tribunal remanded the matter for a fresh decision in line with the legal developments and conflicting judgments regarding the jurisdiction of DRI officers to issue show cause notices under the Customs Act.