2019 (7) TMI 1360 - HC - Customs

Validity of SCN - Jurisdiction - in most of the cases, the investigations have been transferred to the Zonal Offices where the defaulting units are situated - HELD THAT - The present writ petition has become infructuous as the demand raised vide impugned show cause notice has since been confirmed vide order dated 31.01.2018 passed by the adjudicating Authority qua which the petitioner would have the remedy of filing an appeal. Petition dismissed as infructuous.

Summary

Issues: Challenge to show cause notice for evasion of custom duty and jurisdiction of designated officers for investigation.

The High Court judgment pertains to a writ petition filed by a partnership firm engaged in the business of importing sports articles. The Directorate of Revenue Intelligence (DRI) Lucknow Zonal Unit issued a demand-cum-show cause notice alleging evasion of custom duty through undervaluation of imported goods. The petitioner challenged this notice dated 30/31.5.2016 (P-6) and also the Notification dated 7.3.2002 (P-1) granting jurisdiction to designated officers to investigate units across India. The petitioner contended that investigations should be conducted by DRI officers within the same zone as the defaulting units. The respondent justified the notification, citing the authority of the Central Board of Excise and Customs under Section 4 of the Customs Act, 1962.

During the proceedings, it was revealed that investigations had been transferred to the Zonal Offices where the defaulting units were located in most cases. The petitioner's counsel argued that the writ petition had become infructuous as the demand raised in the show cause notice had been confirmed by the adjudicating Authority through an order dated 31.01.2018. The petitioner was informed of the option to appeal this decision. Consequently, the High Court dismissed the petition as infructuous, indicating that the remedy of appeal was available to the petitioner against the confirmed demand.