2018 (4) TMI 1052 - HC - Customs

Jurisdiction - power of DRI to issue SCN - tribunal remanded back the case - Whether CESTAT was justified and correct in law in passing an order of remand to the original adjudicating authority to first decide the issue of jurisdiction, after decision of the Supreme court in Civil Appeal preferred against the decision of Delhi High court in Mangli Impex Limited v. Union of India 2016 (5) TMI 225 - DELHI HIGH COURT ? - Held that - The appeals preferred before the Tribunal are restored to their original position. The Tribunal would decide the appeals on merits, including the question of jurisdiction of the officer of the Directorate of Revenue Intelligence who had issued SCN, without being influenced by the decision of the Delhi High Court in the case of Mangali Impex Limited - appeal disposed off.

Summary

Issues involved:
- Jurisdiction of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) in passing an order of remand.
- Correctness of the decision to remand the matter to the original adjudicating authority.
- Interpretation of the Supreme Court decision in Mangli Impex Limited v. Union of India.
- Restoration of appeals before the Tribunal to decide on merits.

Jurisdiction of CESTAT in passing an order of remand:
The High Court framed a substantial question of law regarding the justification and correctness of CESTAT's decision to remand the matter to the original adjudicating authority. The counsel for the respondent sought to quash the impugned order and remand the matter to the Tribunal for a fresh decision without expressing any opinion on merits. The High Court set aside the impugned order and restored the appeals before the Tribunal to their original position.

Interpretation of the Supreme Court decision in Mangli Impex Limited v. Union of India:
The High Court clarified that the impugned order, which remanded the matter to the adjudicating authority pending the Supreme Court's decision in the appeal against Mangli Impex Limited v. Union of India, was set aside. The Tribunal was directed to decide the appeals on merits, including the question of jurisdiction of the officer who issued show cause notices, without being influenced by the Delhi High Court's decision in the Mangli Impex Limited case. The High Court emphasized that no opinion was expressed on the merits of the appeals or the procedural aspects for the Tribunal to follow.

Restoration of appeals before the Tribunal to decide on merits:
The High Court concluded by answering the substantial question of law, disposing of the appeals in the specified terms, and clarifying that there would be no order as to costs. The Tribunal was instructed to examine the issue of jurisdiction independently and decide the appeals on their merits without being swayed by previous decisions. This comprehensive analysis ensures that the appeals are reinstated for a fresh consideration by the Tribunal without any preconceived notions or influences from past judgments.