2017 (7) TMI 704 - AT - Customs

Jurisdiction - power of DRI to issue SCN - Held that - the powers of officers working in this organization to issue notice under Customs Act, 1962 as proper officers has been subject matter of decision by various High Courts - the matter is being remanded to the original authority to decided the issue of jurisdiction - appeal allowed by way of remand.

Summary

Issues Involved:
Jurisdiction of DRI officers to issue show cause notices under the Customs Act, 1962.

Analysis:

Issue 1: Jurisdiction of DRI officers to issue show cause notices under the Customs Act, 1962

The appeals in this case were against an order resulting from proceedings initiated by the issuance of Show Cause cum Demand Notices by officers of DRI. The key contention revolved around the jurisdiction of DRI officers to issue such notices under the Customs Act, 1962. The Tribunal noted the conflicting opinions among various High Courts on this matter. The Tribunal referred to a case where it was argued that DRI officers were not proper officers as per the Customs Act, 1962, based on a Supreme Court decision. Subsequent amendments and notifications were discussed, highlighting the appointment of Additional Director General, DRI as a proper officer from July 6, 2011, for issuing demand notices under Section 28. The insertion of sub-Section 11 under Section 28 with retrospective effect was also noted. The Tribunal mentioned a Delhi High Court decision favoring the assessee on the jurisdiction issue. However, conflicting views from other High Courts were also highlighted, leading to the matter being brought before the Supreme Court. The Tribunal referred to a recent Delhi High Court case granting liberty to review the challenge based on the outcome of appeals filed in the Supreme Court. Considering the totality of facts and following the Delhi High Court's decision, the Tribunal set aside the impugned order and remanded the matter to the original adjudicating authority to decide the jurisdiction issue post the Supreme Court's decision in a related case. The status quo was to be maintained until a final decision was reached.

In conclusion, the Tribunal decided to set aside the impugned order and remand the matter to the original authority to decide the jurisdiction issue first and then proceed on the merits after the Supreme Court's decision in pending appeals. The status quo was to be maintained during this interim period. The decision was pronounced and dictated in open court.

This detailed analysis provides a comprehensive understanding of the judgment, focusing on the jurisdiction of DRI officers to issue show cause notices under the Customs Act, 1962, and the legal implications arising from conflicting opinions and subsequent legal developments.