Home Case Index All Cases Customs Customs + HC Customs - 2024 (1) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2024 (1) TMI 834 - MADRAS HIGH COURTJurisdiction - Power of DRI to issue SCN - Recovery of duties of customs u/s 28 AAA of Customs Act - HELD THAT:- In the case of TITAN MEDICAL SYSTEMS PVT. LTD. VERSUS COLLECTOR OF CUSTOMS, NEW DELHI [2002 (11) TMI 108 - SUPREME COURT], it was held that since the licensing authority has not taken any steps to cancel the license and the licensing authority also has not claimed that there was misrepresentation in which case once an advance license was issued and not questioned by the licensing authority, the customs authorities cannot interfere on allegation that there was misrepresentation. In that case, the fact was that even the customs authorities questioned about the advance license itself. Therefore, the Hon'ble Supreme Court held that if at all anybody wanted to question about the advance license, the appropriate authority could only be the authority which issued the license viz., DGFT and not the customs authorities. In the instant case on hand, the principle laid down in Titan Medical Systems (P) Ltd v. Collector of Customs, New Delhi would only be applicable. It is an undisputed fact that Director General of Foreign Trade [DGFT] has issued the license under Section 9 of Foreign Trade Development and Regulation Act, 1992 [FTDR Act] and thereby issued SEIS Scrips [Service Exports from India Scheme]. Though DGFT has issued show cause notices on various dates viz., 1st SCN on 21.10.2020, 2nd SCN and 3rd SCN on 03.02.2021 and an order dated 23.10.2020 came to be passed by DGFT placing the petitioner under the Denied Entities List, the same were withdrawn in entirety by virtue of letter dated 20.09.2021. It is also undisputed that till date, DGFT has not initiated any steps to cancel the license issued by them and hence, this Court is of the considered view that the show cause notice dated 24th November 2020 issued by the second Respondent is without any jurisdiction. This Court is of the considered view that the show cause notice dated 24th November 2020 issued by the second Respondent is not in consonance with the Circular No.334/1/2012-TRU dated 01.06.2012 and hence, the same is liable to be set aside - Petition allowed.
|