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2017 (8) TMI 984 - AT - CustomsJurisdiction - power of DRI to issue SCN - Held that - the DRI is not a competent authority - I set aside the impugned orders and remand the matter to the original authority to decide the matter keeping in view the decision of Hon ble Delhi High Court in the case of M/s Mangali Impex Ltd., M/s Pace International And Others Versus Union of India And Others 2016 (5) TMI 225 - DELHI HIGH COURT - appeal allowed by way of remand.
Issues: Jurisdiction of DRI to issue show-cause notice under Customs Act
The judgment pertains to appeals against Order-in-Original No.4586/2006 where the importer's counsel raised a preliminary plea regarding the jurisdiction of the Directorate of Revenue Intelligence (DRI) to issue show-cause notices under the Customs Act. The appellant argued that DRI officers were not proper officers as per the Customs Act, citing a Supreme Court decision. Subsequently, amendments were made to the Customs Act in 2011 to address this issue. Notification No. 44/2011-Cus (NT) was issued, empowering Additional Director General, DRI as a proper officer. The judgment of the Hon'ble Delhi High Court in Mangali Impex case favored the assessee, stating that DRI officers were not empowered to issue show-cause notices prior to the amendments. However, conflicting views were presented by other High Courts. The matter was brought before the Supreme Court, which granted a stay on the Delhi High Court's judgment, indicating that the issue is sub judice. Another case in the Hon'ble Delhi High Court involving DRI-issued notice granted liberty to review the challenge based on the outcome of appeals filed by the Union of India in the Supreme Court. Following the Delhi High Court's decision in a similar case, the appellate tribunal set aside the impugned order and remanded the matter to the original adjudicating authority to first decide the jurisdiction issue post the Supreme Court's decision in Mangali Impex and then proceed on the merits, ensuring the assessee's right to be heard. The status quo was to be maintained until a final decision was reached, and both appeals were allowed by way of remand.
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