Tax Management India. Com
Law and Practice  :  Digital eBook
Research is most exciting & rewarding
  TMI - Tax Management India. Com
Follow us:
  Facebook   Twitter   Linkedin   Telegram

Home Case Index All Cases Customs Customs + HC Customs - 2006 (7) TMI HC This

  • Login
  • Cases Cited
  • Referred In
  • Summary

Forgot password       New User/ Regiser

⇒ Register to get Live Demo



 

2006 (7) TMI 306 - HC - Customs


Issues:
1. Competency of the show cause notice issued by the Directorate of Revenue Intelligence (DRI) under Sections 28 and 124 of the Customs Act, 1962.
2. Validity of the show cause notice in relation to provisionally assessed goods.
3. Authority of DRI officials to issue show cause notices under Sections 28 and 124 of the Customs Act, 1962.

Issue 1:
The High Court addressed the competency of the show cause notice issued by the DRI under Sections 28 and 124 of the Customs Act, 1962. The Commissioner of Customs had earlier held the notice to be invalid due to the goods being provisionally assessed and a final assessment order being passed after the notice. The Tribunal had also dismissed the appeal by the revenue, stating that the show cause notice under Section 28 would not be maintainable for provisionally assessed goods. However, the High Court referred to a previous judgment where it was held that DRI officers are entitled to issue show cause notices under Sections 28 and 124 of the Customs Act. The Court acknowledged the error in the Tribunal's decision but ultimately found that since the goods were provisionally assessed when the notice was issued, there could be no short levy, rendering the notice invalid.

Issue 2:
Regarding the validity of the show cause notice in relation to provisionally assessed goods, the High Court emphasized that despite the DRI officers having the authority to issue such notices, in this specific case, the notice was deemed not maintainable due to the provisional assessment status of the goods at the time of issuance. The Court clarified that even though the DRI officials were empowered to issue the notice, the provisional assessment situation prevented any short levy, making the notice groundless.

Issue 3:
The Court also examined the authority of DRI officials to issue show cause notices under Sections 28 and 124 of the Customs Act, 1962. While acknowledging the previous judgment affirming the entitlement of DRI officers to issue such notices, the Court highlighted that the Tribunal's finding on the matter was not sustainable due to the provisional assessment status of the goods. The Court concluded that given the lack of short levy in the case due to provisional assessment, there was no need to delve further into the jurisdiction of DRI officials to issue show cause notices.

In conclusion, the High Court ruled that while DRI officials are authorized to issue show cause notices under the Customs Act, the specific notice in question was invalid due to the provisional assessment status of the goods, which negated any short levy. The Court found no grounds to challenge the Tribunal's decision further, leading to the dismissal of the case without costs.

 

 

 

 

Quick Updates:Latest Updates