2018 (11) TMI 685 - AT - Customs

Jurisdiction - power of Mumbai Bench to deal with the appeal filed against the Order passed by the Commissioner, Nhava Sheva-III Port - searches have been conducted in their offices at Delhi by DRI - Held that - No seizure has been affected within New Delhi, giving cause to appeal before Delhi Bench of Tribunal. The show Cause notice has been issued for the extension of time for issuing of the show cause notices in respect of goods seized at Nhava Sheva Mumbai, and therefore, it will be the jurisdiction of Mumbai Bench to deal with the appeal filed against the Order passed by the Commissioner in the instant case. SCN has been issued correctly by the DRI, and is not without jurisdiction. The Registry is directed to transfer this appeal to West Zonal Bench Mumbai, after seeking approval from the Hon ble President.

Summary

Issues:
1. Extension of time period for issuance of show cause notice in a seizure matter.
2. Jurisdiction of the Zonal Bench for filing appeal.
3. Competency of DRI officers to issue show cause notices.

Extension of Time Period for Show Cause Notice:
The appeal was filed against an order allowing the extension of time for issuing a show cause notice regarding a seizure. The Adjudicating Authority extended the time period due to ongoing investigations revealing a complex scheme involving misdeclaration of exported goods. The appellant contested the extension, citing the requirement for the Commissioner to determine sufficient cause for the extension. The appellant argued that investigations were completed, and the test report was pending, thus no further investigation was necessary. Additionally, the appellant raised concerns about the authority of the officer issuing the show cause notices. The Tribunal held that the show cause notice was correctly issued by the DRI officer and dismissed the appeal.

Jurisdiction of Zonal Bench:
The Tribunal analyzed the jurisdiction for filing the appeal, considering the location of the seizure and the authority passing the impugned order. It was determined that the appropriate jurisdiction for filing the appeal would be the Zonal Bench in Mumbai, where the cause of action arose. Despite the appellant being Delhi-based and searches conducted in Delhi, as the seizure occurred in Nhava Sheva, Mumbai, the Mumbai Bench had jurisdiction over the appeal. The Tribunal directed the transfer of the appeal to the West Zonal Bench in Mumbai.

Competency of DRI Officers:
The competency of DRI officers to issue show cause notices was challenged by the appellant, citing a High Court decision. However, the Tribunal upheld the authority of the DRI officers, noting that they were conferred with the power of Customs Officers under the Customs Act. The Tribunal referenced a modified order from a Division Bench, affirming the DRI officers' jurisdiction to issue show cause notices and investigate cases. Consequently, the Tribunal concluded that the show cause notice was appropriately issued by the DRI officers.