2023 (12) TMI 1157 - HC - Customs

Jurisdiction - power of designated offcer to issue SCN - HELD THAT - The Petitioner needs to canvas such legal position as asserted in the present proceedings before the adjudicating officer, who as fairly pointed out on behalf of the respondents would certainly take into consideration all such contentions including the issues on the law as laid down by the Supreme Court in the case of Canon India Pvt. Ltd. vs. Commissioner of Customs 2021 (3) TMI 384 - SUPREME COURT and pass appropriate orders on the show cause notice. The petition is accordingly disposed of directing the Respondents to adjudicate the show cause notice as expeditiously as possible and in any event within a period of six months from today. As the show cause notice is issued about four years back, there cannot be any further delay on such adjudication.

Summary

Issues Involved:
The issues in this case involve the legality and authority of the show cause notice issued by Respondent No.3, the retroactive validation of actions under Section 97 of the Finance Act, 2022, the validity of certain notifications empowering Respondent No.3, and the jurisdiction of the designated officer to issue the show cause notice.

Legality and Authority of Show Cause Notice:
The petitioner sought a writ to quash the show cause notice dated 03.10.2019, arguing that the designated officer lacked jurisdiction based on a decision of the Supreme Court in Canon India Pvt. Ltd. vs. Commissioner of Customs 2021 SCC Online SC 200. The respondents agreed to adjudicate the notice under Notification No. 59/2019-Customs(N.T./CAA/DRI) dated 6 November, 2019.

Retroactive Validation under Section 97 of Finance Act:
The petitioner contended that the powers under Section 97 of the Finance Act cannot retroactively validate the actions of Respondent No.3 in issuing the show cause notice dated 03.10.2019. The respondents argued that the legality of the notice, including the authority and jurisdiction of the officer, can be considered by the adjudicating officer in light of legal precedents.

Validity of Empowering Notifications:
The petitioner challenged the validity of Notification No.40/2012 dated 02.05.2012 and Notification No.17/2002 - Customs (NT) dated 07.03.2002, claiming that they empower Respondent No.3 to issue the impugned show cause notice. The court directed the respondents to consider these contentions during the adjudication process.

Jurisdiction of Designated Officer:
The issue of the jurisdiction of the designated officer to issue the show cause notice was raised by the petitioner, citing a Supreme Court decision. The court emphasized that all legal contentions, including those related to jurisdiction and interest, should be raised before the adjudicating officer for appropriate consideration.

Final Judgment:
The court disposed of the petition, directing the respondents to adjudicate the show cause notice expeditiously within six months. The petitioner's contentions were kept open for consideration during the adjudication process, with no order as to costs.