1996 (10) TMI 332 - AT - Central Excise

Summary

Issues: Jurisdiction of show cause notice signed by Assistant Director of Anti Evasion.

In this judgment by the Appellate Tribunal CEGAT, New Delhi, the issue revolved around the jurisdiction of a show cause notice signed by the Assistant Director of Anti Evasion. The impugned order was based on a show cause notice issued by the Director, Anti Evasion in the Directorate of Revenue Intelligence, New Delhi.

Analysis:

The appellant's representative, Shri A.K. Jain, relied on a previous Tribunal judgment in the case of Mallhoo Miyan Yakub Miyan v. Collector of Central Excise, where it was held that show cause notices signed by the Assistant Director of Anti Evasion were without jurisdiction and invalid. Despite the Revenue challenging this judgment in the Supreme Court, the operation of the judgment was not stayed. Shri Jain argued that based on this precedent, the show cause notice in the present case should also be deemed invalid, and he did not delve into the merits of the case.

On the other hand, Shri G.D. Sharma, representing the Respondent, contended that officers of the Directorate of Anti Evasion could exercise powers of Central Excise officers until a specific notification separated the powers of officers from the Anti Evasion and Revenue Intelligence directorates. Referring to relevant notifications, he argued that the show cause notice was not lacking in competence due to the signatory.

Upon careful consideration, the Tribunal referred to the earlier Tribunal case and observed that officers were appointed separately in the Directorate of Anti Evasion and Directorate of Revenue Intelligence. It was noted that the Assistant Director, if appointed in the Anti Evasion Directorate, could not exercise powers of a Central Excise Officer. Consequently, the show cause notices signed by the Assistant Director (A.E.) were deemed without jurisdiction and invalid, leading to the invalidation of the adjudication proceedings based on them.

Based on the precedent set by the earlier Tribunal case, the Tribunal allowed the appeal, setting aside the Collector's order due to the invalidity of the show cause notices signed by the Assistant Director of Anti Evasion.