2017 (8) TMI 1085 - AT - Customs

Proceedings initiated by issue of Show Cause cum Demand Notice by the officers of Commissioner of Customs(Prev.) - 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 - I set aside the impugned order and remand the matter to the original authority to decide the question of jurisdiction first and thereafter on merit after the matter is settled by the Hon ble Supreme Court in the pending appeals by the Revenue against the decision of Hon ble Delhi High Court in the case of Mangali Impex Vs. Union of India 2016 (5) TMI 225 - DELHI HIGH COURT - appeal allowed by way of remand.

Summary

Issues:
1. Jurisdiction of officers to issue notice under Customs Act, 1962.
2. Conflict of decisions among various High Courts.
3. Impact of Supreme Court decisions on jurisdiction issues.
4. Remand of the matter to original adjudicating authority.

Jurisdiction of officers to issue notice under Customs Act, 1962:
The appeals were against an order resulting from proceedings initiated by the issue of Show Cause cum Demand Notice by officers of Commissioner of Customs(Prev.). The Tribunal noted the issue of jurisdiction of officers to issue notices under the Customs Act, 1962, which had been a subject of decision by various High Courts. The Tribunal referred to a case where the issue of jurisdiction was discussed, and the Hon'ble Supreme Court's decision was highlighted, along with subsequent amendments to the Customs Act empowering officers to issue demand notices.

Conflict of decisions among various High Courts:
There was a conflict of opinions among High Courts regarding the jurisdiction of Directorate of Revenue Intelligence (DRI) officers to issue Show Cause Notices (SCNs) under the Customs Act. The High Court of Delhi held in favor of the assessee, while other High Courts took a contrary view. The conflicting decisions led to the matter being brought before the Hon'ble Supreme Court, which granted a stay on the Delhi High Court's judgment, indicating that the issue was sub judice before the Supreme Court.

Impact of Supreme Court decisions on jurisdiction issues:
The Tribunal considered various judgments and the impact of the Supreme Court's decisions on the jurisdiction issue. It mentioned a case where the High Court of Delhi granted liberty to review the challenge depending on the outcome of appeals filed by the Union of India in the Supreme Court. The Tribunal followed the ratio laid down by the High Court of Delhi in a similar case and remanded the matter to the original adjudicating authority to decide the jurisdiction issue first, followed by a decision on merits after the Supreme Court's decision.

Remand of the matter to original adjudicating authority:
In light of similar cases and questions of law, the Tribunal set aside the impugned order and remanded the matter to the original authority to decide the jurisdiction question first. The Tribunal maintained the status quo until the matter was settled by the Supreme Court. The decision aimed to provide an opportunity for the assessee to be heard and for the original authority to decide the issue of jurisdiction after the Supreme Court's decision.

This detailed analysis of the judgment addresses the jurisdictional issues, conflicting decisions among High Courts, the impact of Supreme Court decisions, and the remand of the matter to the original adjudicating authority for further consideration.