2017 (9) TMI 930 - AT - Customs

Jurisdiction - power of Assistant Commissioner of Customs (Prev.) to issue SCN - Held that - the notice issued by the Assistant Commissioner of Customs (Prev.) who was not a competent authority as per the ratio laid down in the case of Mangali Impex Ltd. Vs. UOI 2016 (5) TMI 225 - DELHI HIGH COURT - In this connection, we note that similar issues have been dealt with in various cases by the Tribunal recently. It is held that the matters have to be remanded back to the original authority for a decision - appeal allowed by way of remand.

Summary

Issues: Jurisdiction of DRI officers to issue show cause notice under Customs Act

In this case, the appeal was filed against an Order-in-Original where it was contended that the notice was issued by an Assistant Commissioner who was not competent, as per a decision of the Hon'ble Delhi High Court in a specific case. The Tribunal noted similar issues in other cases and referred to a previous decision where the issue of jurisdiction of DRI officers to issue show cause notices under the Customs Act was discussed. The appellant argued that DRI officers were not proper officers as per a Supreme Court decision. The Tribunal observed that the Customs Act was amended to address this issue, empowering certain officers, including the Additional Director General of DRI, to issue demand notices under Section 28. Subsequently, a provision was inserted assigning proper officer functions to DRI officers with retrospective effect. The issue of jurisdiction of DRI officers to issue show cause notices was also discussed in conflicting decisions of different High Courts, leading to the matter being sub-judice before the Supreme Court. The Tribunal, following the Delhi High Court decision in another case, set aside the impugned order and remanded the matter to the original adjudicating authority to decide the jurisdiction issue after the Supreme Court's decision. The appeals were allowed by way of remand, maintaining the status quo until a final decision.

This judgment delves into the jurisdiction of DRI officers to issue show cause notices under the Customs Act, highlighting the impact of various court decisions and legislative amendments on this issue. The Tribunal's analysis considers the legal framework, including the Customs Act provisions and subsequent amendments, to determine the proper authority for issuing demand notices. The reference to conflicting decisions of different High Courts and the subsequent involvement of the Supreme Court underscores the complexity and significance of the jurisdiction issue. The Tribunal's decision to remand the matter for fresh consideration, in line with the Delhi High Court's ruling in a similar case, reflects a cautious approach pending the Supreme Court's decision. Overall, this judgment underscores the importance of legal clarity and adherence to established procedures in matters of jurisdiction under the Customs Act.