2017 (9) TMI 1086 - AT - Customs

Jurisdiction - power of DRI to act as proper officer and to issue SCN - 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 involved:
Jurisdiction of D.R.I. Officers to issue show cause notice under Customs Act, 1962 for imports made prior to April 2011.

Detailed Analysis:

Issue 1: Jurisdiction of D.R.I. Officers
The Tribunal considered the jurisdiction of D.R.I. Officers to issue show cause notices under the Customs Act, 1962 for imports made before April 2011. It was noted that the High Courts had conflicting views on this matter. The Hon'ble Delhi High Court ruled that D.R.I. Officers were not competent to issue show cause notices for imports made prior to 08.04.2011. However, Notification No.44/2011-Cus (NT) was issued to assign the functions of the proper officer to various officers, including Additional Director General, DRI, from July 6, 2011. Subsequently, sub-section 11 was inserted under section 28 of the Customs (Amendment and Validation) Act, 2011, assigning proper officer functions to DRI officers with retrospective effect from September 16, 2011. The issue was also addressed by the Hon'ble Mumbai High Court and the High Court of Telangana and Andhra Pradesh, leading to conflicting decisions. The matter was eventually brought before the Hon'ble Supreme Court, which stayed the operation of the Delhi High Court judgment, making the issue sub judice.

Issue 2: Tribunal's Decision
Considering the conflicting decisions and the stay granted by the Hon'ble Supreme Court, the Tribunal decided to set aside the impugned order and remand the matter to the original adjudicating authority. The Tribunal emphasized the importance of awaiting the Supreme Court's decision in the Mangali Impex case before proceeding further. The Tribunal's decision aligned with the principle that an appeal admitted by the apex court should be decided based on the outcome of the apex court judgment. Therefore, the Tribunal allowed the appeal by way of remand, maintaining the status quo until a final decision is reached.

In conclusion, the judgment delves into the complex issue of jurisdiction concerning D.R.I. Officers' authority to issue show cause notices under the Customs Act, 1962. The Tribunal's decision reflects a cautious approach, acknowledging the conflicting views of various High Courts and the pending Supreme Court decision. The remand to the original authority ensures a fair consideration of jurisdictional issues in light of the evolving legal landscape.