2017 (8) TMI 1321 - AT - Customs

Jurisdiction - power of DRI to issue SCN - Held that - similar issue decided in the case of M/s Doaba Stud & Agriculture Farm Shri Yadvendra Singh Partner Versus CC New Delhi (I&G) 2017 (6) TMI 695 - CESTAT NEW DELHI where it was held that even the new inserted section 28(11) does not empower either the officers of DRI or the DGCEI to issue the SCN for the period prior to 8.4.11 - appeal allowed by wayof remand.

Summary

Issues involved:
Jurisdiction of DRI Officers to issue show cause notice under Customs Act.

Analysis:
The appeals were filed against orders passed by various Customs authorities. During the hearing, it was agreed that the Directorate of Revenue Intelligence (DRI) issued the notice, but there was a question about the competency of DRI as per the Delhi High Court's decision in Mangali Impex Ltd. vs. Union of India. The Tribunal noted similar issues in other cases and referred to a previous decision where the issue of jurisdiction of DRI officers was discussed. The appellant argued that DRI officers were not proper officers under the Customs Act based on a Supreme Court decision. Amendments were made to the Customs Act to address this issue, empowering certain DRI officers to issue demand notices. However, conflicting decisions from different High Courts led to the matter being taken to the Supreme Court, which stayed the Delhi High Court's judgment. The Tribunal followed the Delhi High Court's decision in a similar case and remanded the matter to the original authority to decide the jurisdiction issue after the Supreme Court's decision. The appeals were allowed by way of remand.

In line with the Tribunal's decision, the matters were remanded for a fresh decision, with both parties agreeing to this course of action.