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TMI Blog2023 (9) TMI 1301X X X X Extracts X X X X X X X X Extracts X X X X ..... gn exporters, primarily on the ground that the Customs Act would not be applicable to the transactions which have taken place in a foreign territory. Admittedly a show cause notice as to the petitioners are against the entities situated in Germany who had sold goods which were subject matter of export and that too prior to the amendment of the Customs Act that is the amendment incorporating subsection (2) of Section 1 of the Customs Act by the Finance Act, 2018 (Act No. 13 of 2018 with effect from 29 March 2018). 2. On 17 July 2022, we had passed a detailed order referring to the contentions as raised by the petitioners. For convenience, we refer to the said order which reads thus:- 1. We have heard Mr. Rastogi, learned counsel for the p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ere show cause notice was issued to the petitioners by the Commissioner of Customs (NS-V), Jawaharalal Nehru Custom House, Custom Zone-II, Mumbai and to another noticee, namely, M/s. Maruti Knit Tex, the show cause notice against the petitioners was dropped by an Order-in-Original dated 30 December, 2020. It is submitted that in responding to such show cause notice, the petitioners had urged similar contentions as been urged in the present petition that the Commissioner of Customs inter alia did not have jurisdiction and hence there was no question of any order levying penalty being passed against the petitioners, which was merely a foreign exporter based in Germany. It was thus urged that the petitioner being situated outside India, there ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d by the observations of the authority in the case of M/s. Maruti Knit Tex subject matter of order dated 30 December, 2020, in that case, further adjudication of this petition would not be called for. 9. Let copy of this order be forwarded by the learned counsel for revenue to the concerned authority. 10. Stand over to 24 July, 2023 (H.O.B.)." 3. Thereafter, the proceedings were taken up for hearing on 4 September 2023 and being dis-satisfied with the approach on behalf of the department, we passed the following order:- 1. Mr. Ramalingeswara Rao, IRS, who is stated to have given instructions to the learned advocate for the respondent/revenue, a copy of which is placed on record, we are of the clear opinion that either the concerne ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d as specifically set out in Paragraph Nos. 6 and 7 of our order dated 17th July 2023. 3. Learned counsel for the Revenue has fairly pointed out that the show cause notice in question and which in our prima-facie, opinion is without jurisdiction, was issued by Deputy Commissioner of Customs, Nhava Sheva-V, Jawaharlal Nehru Customs House, Nhava Sheva, Tal-Uran, District Raigad, Maharashtra by Mr. Shreyansh Mohan, who is stated to be no more occupying the said position. The officer issuing show cause notice is supposed to first ascertain, whether, he has jurisdiction to issue show cause notice. Thus, asking Mr. Ramlingeshwar Rao to give instructions to the learned Advocate for Respondent Nos.2 and 3 was totally incorrect and unjustified. W ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t proceedings which goes to the root of the authority and jurisdiction of the designated officer to issue the impugned show cause notices to a foreign entity, we would be required to hear the parties on the merits of their respective contentions, at the final hearing of the petition. Hence, Rule. Respondents waive service. 7. In the light of the above discussion and considering the provisions of Section 1(2) of the Customs Act prior to its amendment by Finance Act, 2018 (w.e.f. 29.3.2018) as also considering the effect of the said amendment, in our opinion, the petitioners have made out a prima facie case for grant of interim reliefs. Hence, pending the hearing and final disposal of the petitions, the impugned show cause notices shall stan ..... X X X X Extracts X X X X X X X X Extracts X X X X
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