2022 (12) TMI 489 - HC - Customs

Jurisdiction - power of DRI in proceeding with the show cause notice issued by the DRI for Re-determination and re-assessment of the Bills of Entry - HELD THAT - Considering the pendency before the Hon ble Apex Court of Review Petitions preferred by the Union of India, coupled with challenge to the retrospectivity of the amended Act, we deem it appropriate to issue Notice returnable on 19/01/2023 and grant ad-interim relief in terms of Para 12(d). Direct service permitted today.

Summary

Issues:
Challenge to show cause notice under Customs Act, 1962 jurisdiction and legality.

Analysis:
The petitioner, a partnership firm, challenged the respondent authority's action in proceeding with a show cause notice issued by the DRI under section 28(4) of the Customs Act, 1962. The petitioner argued that the action was beyond jurisdiction, citing a decision of the Apex Court in a similar case. The review petition in the mentioned case is pending before the Apex Court, challenging an amendment validating previous actions. The present petition sought various reliefs, including questioning the authority of the respondent to issue the show cause notice, declaring lack of jurisdiction, and quashing the notice as illegal and unconstitutional.

In the hearing, learned advocates for both parties presented arguments, with references made to previous cases where interim relief was granted to petitioners in similar matters. The court took note of the pendency of review petitions before the Apex Court challenging the retrospectivity of the amended Act. Considering these factors, the court deemed it appropriate to issue a notice returnable on a future date and granted ad-interim relief to stay the adjudication proceedings of the show cause notice until further orders.

The court's decision was influenced by the ongoing legal challenges and the need to maintain the status quo pending the resolution of key issues related to the jurisdiction and legality of the show cause notice. The order for ad-interim relief aimed to prevent any adverse consequences to the petitioner during the period of legal uncertainty. The court also directed the communication of the interim relief to the concerned officer and permitted service through e-mail for efficient notification.