2021 (7) TMI 643 - HC - Customs

Jurisdiction - power of DRI to issue SCN - petitioner relies on the judgment of the Supreme Court in M/S CANON INDIA PRIVATE LIMITED VERSUS COMMISSIONER OF CUSTOMS 2021 (3) TMI 384 - SUPREME COURT in which it was held that Additional Director General of DRI is not the proper officer to issue Show Cause Notice under Section 28(4) of the Customs Act, 1962. HELD THAT - On instructions, learned counsel for the respondents states that the issue of jurisdiction shall be decided as a preliminary issue by the adjudicating authority, after giving an opportunity of hearing to the petitioner - learned counsel for the petitioner does not wish to press the present petition. Keeping in view the consensual agreement, the present writ petition along with pending applications is disposed of with a direction to the adjudicating authority to decide the issue of jurisdiction as a preliminary issue.

Summary

Issues:
Challenge to Show Cause Notice jurisdiction of Principal Additional Director General of DRI.

Analysis:
The petition challenged the legality of a Show Cause Notice dated 11th December 2020, a Notification dated 4th January 2021, and a Notice dated 15th June 2021. The petitioner argued that the Show Cause Notice was illegal as it was issued by the Principal Additional Director General of DRI, who, according to the judgment in M/S Canon India Private Ltd Vs Commissioner of Customs, was not the proper officer to issue such a notice under Section 28(4) of the Customs Act, 1962. The Senior Standing Counsel for the respondents accepted the notice on behalf of the respondents.

After some arguments, it was revealed that the petitioner had filed a reply to the Show Cause Notice, claiming that the adjudicating authority lacked jurisdiction to decide the matter. In response, the learned counsel for the respondents stated that the issue of jurisdiction would be decided as a preliminary issue by the adjudicating authority after providing an opportunity of hearing to the petitioner. Consequently, the petitioner decided not to pursue the petition further.

As a result of the consensual agreement between the parties, the writ petition and pending applications were disposed of with a direction to the adjudicating authority to determine the issue of jurisdiction as a preliminary matter. It was clarified that if the petitioner disagreed with the decision of the adjudicating authority, they could challenge it along with the Show Cause Notice in accordance with the law. The order was to be uploaded on the website immediately, and a copy was to be sent to the learned counsel via email.