2019 (10) TMI 60 - AT - Customs

Duty Drawback - power of DRI to issue SCN - Rules 16 and 16A of the Customs and Central Excise Duties Drawback Rules, 1995 - HELD THAT - The principal issue raised by the appellant in this case while challenging the imposition of penalty on each of them is that since DRI Officer is not a proper officer under Rules 16 and 16A of the Customs and Central Excise Duties Drawback Rules, 1995, therefore, the show-cause notice itself is not maintainable. The issue thus remains to be determined is whether the DRI officer has the power to issue show-cause notice under Rules 16 and 16A of the Customs and Central Excise Duties Drawback Rules, 1995 or not - appeal allowed by way of remand.

Summary

Issues:
Jurisdiction of DRI officers to issue show-cause notice under Rules 16 and 16A of the Customs and Central Excise Duties Drawback Rules, 1995.

Analysis:
The case involved appeals against an Order-in-Original passed by the Commissioner of Customs regarding alleged over-invoicing in exports by a company. The appellant raised a jurisdictional objection regarding the authority of DRI officers to issue show-cause notices under the relevant rules. The appellant contended that the DRI officer is not a 'proper officer' under the said rules, making the notice invalid. The appellant cited precedents, including the Nylex Traders case and Hem Chand Gupta & Sons case, to support their argument that jurisdictional issues can be raised at any stage of the proceedings.

The Revenue argued that since the jurisdictional issue was not raised before the adjudicating Commissioner, it was not examined, suggesting a remand to consider and decide the matter. The appellant expressed willingness for a remand to address the jurisdictional issue. The Tribunal considered the submissions and noted that the principal issue raised was the validity of the show-cause notice due to the alleged lack of authority of the DRI officer. Despite the jurisdictional issue not being raised before the adjudicating authority, the Tribunal, following legal principles, allowed for the objection to be raised at any stage of the proceedings.

The Tribunal referred to the Nylex Traders case and highlighted the importance of jurisdictional objections going to the root of the case. Considering the arguments and precedents, the Tribunal decided to remand the matter to the adjudicating authority to determine the jurisdictional issue regarding the power of DRI officers to issue show-cause notices under the relevant rules. The Tribunal kept all issues open and allowed the appeals by way of remand, emphasizing the need for a proper examination of the jurisdictional matter.

This detailed analysis of the judgment highlights the key legal issues, arguments presented by both parties, relevant precedents cited, and the Tribunal's decision to remand the case for further consideration of the jurisdictional matter.