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2024 (12) TMI 100 - HC - CustomsJurisdiction - proper officer - SCN and Order-in-Original challenged on the ground that the Directorate of Revenue Intelligence (DRI) officers cannot be considered as proper officers for issuing the show cause notice - HELD THAT - The Hon ble Supreme Court 2024 (11) TMI 391 - SUPREME COURT (LB) , has disposed of the review petition by observing that the decision passed in the M/S CANON INDIA PRIVATE LIMITED VERSUS COMMISSIONER OF CUSTOMS 2021 (3) TMI 384 - SUPREME COURT did not consider the notification and provisions of law since the same was not brought to their notice. The Supreme Court, in the review petition, held that a DRI officer is a proper officer for issuing show cause notice. The Hon ble Supreme Court also upheld the Validation Act by which amendment, the DRI officers were empowered to issue show cause notice. Now that the review petition filed by the revenue has been allowed, the petition is taken up for disposal. The learned counsel for the Petitioner states that the Petitioner has already filed an appeal against the Order-in-Original dated 5 October 2017. Accordingly, the Appellate Authority, should proceed to decide this appeal following law. This Petition is disposed of.
Issues:
Challenge to impugned Order-in-Original dated 5 October 2017 and show cause notice dated 18 December 2014, Directorate of Revenue Intelligence (DRI) officers' authority to issue show cause notice, challenge to Note 3 in Notification No.125/2010/Cus, validity of Finance Act, 2022, jurisdiction of proper officers to issue show cause notices under Section 28 of the Customs Act, 1962. Analysis: The petition challenges the Order-in-Original dated 5 October 2017 and the show cause notice dated 18 December 2014. The challenge is primarily based on the contention that DRI officers cannot be considered as "proper officers" for issuing the show cause notice. The reliance is placed on the decision of the Hon'ble Supreme Court in the case of Commissioner of Customs Vs. Canon India Private Limited. Additionally, the Petitioner contests the validity of Note 3 in Notification No.125/2010/Cus, alleging it to be ultra vires the Customs Act, 1962 and the Customs Tariff Act, 1975. The petition was kept pending due to a review petition filed before the Hon'ble Supreme Court seeking a review of the decision in Canon India Private Limited. The Supreme Court, in its order dated 7 November 2024, disposed of the review petition and upheld that DRI officers are "proper officers" for issuing show cause notices. The Supreme Court also validated the amendment empowering DRI officers to issue show cause notices. Consequently, the petition challenging the impugned Order-in-Original is taken up for disposal. The Hon'ble Supreme Court's order provided detailed reasoning and directions, emphasizing the appointment of DRI officers as customs officers and the empowerment to issue show cause notices. The judgment clarified that the review pertained to the jurisdiction of DRI officers to issue show cause notices under Section 28 of the Act, 1962, without affecting the findings on the aspect of limitation. The judgment also addressed the retrospective validation of show cause notices under Section 28 and affirmed the competency of specific officers to issue such notices. Regarding the challenge to Note 3 of the Notification, the Court noted that a similar challenge was previously raised by the Petitioner and granted liberty to challenge the alleged invalidity of Note 3 in subsequent proceedings. All contentions of the parties on merits, except those concluded by the Supreme Court's decision, were kept open for consideration by the Appellate Authority. In conclusion, the Petition was disposed of without costs, and interim orders were vacated. The judgment provided clarity on the authority of DRI officers, validation of show cause notices, and the challenge to Note 3, ensuring that all relevant issues were addressed comprehensively.
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