2024 (4) TMI 578 - HC - Customs

Jurisdiction - power to adjudicate SCN - Seeking direction to expeditiously adjudicate SCN u/s 124 of the Customs Act, 1962 - seeking provisional release of the seized goods u/s 110A of the Act - only argument raised by the petitioner is that the case of the petitioner is peculiar and as such an officer now below the rank of Commissioner of Customs should adjudicate the same. HELD THAT - The only factor to show peculiarity is that the petitioner was arrested at the Airport and the arrest was authorized by Commissioner of Customs. Further, it is contended that in the litigation that enured prior to the issuance of the Show Cause Notice, an affidavit was filed by Commissioner of Customs - there are no so-called facts as contended by the petitioner amount of any peculiar facts and circumstances warranting any transfer of jurisdiction. Section 104 of the Act dealing with power of arrest, empowers Principal Commissioner of Customs or Commissioner of Customs, by a general or special order, to arrest any person whom he has reason to believe has committed an offence punishable under Section 132, 133, 135, 135A or Section 136 of the Act. Petitioner was alleged to have committed an offence under Section 132 and 135 and the arrest of the petitioner was done under the order of Commissioner of Customs. Since the Commissioner of Customs was impleaded, in terms of the said Circular, it was the Commissioner of Customs, who was authorized to file an affidavit. Accordingly, mere fact that Commissioner of Customs has filed an affidavit would not denude an officer, otherwise empowered under the Act and the Rules and Notifications, to issue and adjudicate a Show Cause Notice even though the officer may be below the rank of the Commissioner of Customs - it is noticed that the case of the petitioner is far from peculiar/unique as there are several cases where arrests are made for infraction of the provisions under orders issued by Commissioner of Customs, which are challenged and proceedings initiated prior and post issuance of Show Cause Notices. There are no peculiar facts and circumstances in the case of the petitioner to hold that an officer below the rank of Commissioner of Customs is denuded of the power or authority to adjudicate the Show Cause Notice - In the instant case subject Show Cause Notice issued on 31.03.2023 has been issued by a competent and authorized officer whose competence and authority is not under challenge by the petitioner. There are no merit in the petition - The petition is consequently dismissed.

Summary

Issues involved:
The issues involved in this case are the expeditious adjudication of a Show Cause Notice u/s 124 of the Customs Act, 1962 and the contention regarding the rank of the officer adjudicating the notice.

Adjudication of Show Cause Notice:
The petitioner sought a direction for the expeditious adjudication of a Show Cause Notice dated 31.03.2023 u/s 124 of the Customs Act, 1962. The petitioner was arrested at the Airport, and subsequent legal proceedings involved the Commissioner of Customs. The petitioner argued that officers below the rank of Commissioner of Customs would be bound by the stand taken in an affidavit filed by the Commissioner of Customs in previous proceedings. It was contended that the Show Cause Notice should be adjudicated by an officer not below the rank of Commissioner of Customs.

Rank of Adjudicating Officer:
The petitioner conceded that officers from Additional Commissioner of Customs to Commissioner of Customs are competent to adjudicate the Show Cause Notice. However, due to the peculiar circumstances of the case, it was argued that the notice should be adjudicated by an officer not below the rank of Commissioner of Customs. The court rejected this contention, stating that the officer who issued the Show Cause Notice, an Additional Commissioner of Customs, had the power and competence to decide the matter. The court found no peculiar facts warranting a transfer of jurisdiction and emphasized that the competence and authority of the issuing officer were not under challenge.

Conclusion:
The court dismissed the petition, stating that there were no peculiar facts or circumstances in the case to require an officer below the rank of Commissioner of Customs to adjudicate the Show Cause Notice. The court highlighted that the competence and authority of the Assistant Commissioner of Customs, who issued the notice, were not challenged, and therefore, the petitioner's request for the Commissioner of Customs to adjudicate the notice was unfounded.