2017 (9) TMI 1084 - AT - Customs

Jurisdiction - power of DRI to issue SCN - proper officer - Held that - the notice issued by the DRI who was not a competent authority as per the ratio laid down in the case of Mangali Impex Ltd. Vs. UOI 2016 (5) TMI 225 - DELHI HIGH COURT - In this connection we note 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 - appeal allowed by way of remand.

Summary

Issues: Jurisdiction of D.R.I. Officers as 'proper officer' for demand proceedings under Customs Act, 1962.

In this judgment by the Appellate Tribunal CESTAT NEW DELHI, the issue revolved around the jurisdiction of D.R.I. Officers to act as 'proper officer' for demand proceedings under the Customs Act, 1962. The proceedings were initiated based on a show cause notice seeking confirmation of duty demanded in relation to imports made before April 2011. The Tribunal referred to various High Court decisions and amendments to the Customs Act to address the issue. The Hon'ble Delhi High Court ruled in the case of Mangli Implex that D.R.I. Officers were not competent to issue show cause notices for imports made before 08.04.2011. The Tribunal noted conflicting decisions from different High Courts and the subsequent involvement of the Hon'ble Supreme Court in granting a stay on the Delhi High Court judgment. The Tribunal also considered a similar case decided by the Hon'ble High Court of Delhi involving the issuance of a notice by DRI, where the High Court granted liberty to review the challenge based on the outcome of appeals filed in the Supreme Court. In light of these considerations, 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 decision in Mangli Impex and then proceed on the merits of the case, ensuring the assessee's right to be heard. The status quo was to be maintained until a final decision was reached.

Furthermore, the Tribunal's decision aligned with a previous observation in the case of Supro Overseas Pvt. Ltd. & Ors., where the Tribunal emphasized sending back appeals to the adjudicating authority pending the apex court's decision in the Mangali Impex Case. The Tribunal highlighted the importance of granting reasonable opportunities for both sides to be heard based on the apex court's judgment. The Tribunal emphasized the need to respect the jurisdiction of the apex court and not overreach its authority. Consequently, the impugned order was set aside, and the matter was remanded to the Original Authority for further consideration, with the directive to maintain the status quo during the interim period. Ultimately, the appeal filed by the appellant was allowed by way of remand, ensuring a fair and thorough review of the jurisdictional issue at hand.