2025 (2) TMI 858 - HC - Customs

Evasion of duty by undervaluation - competency of DRI officials causing show cause under the Customs Act 1962 - HELD THAT - When the matter is taken up for hearing for consideration by this Court today it is brought to the notice of this Court by the learned standing counsel representing the Customs Department that the Hon ble Supreme Court has disposed of Mangli Impex 2016 (8) TMI 1181 - SC ORDER case holding the officials of DRI are competent to issue show cause notice under the Customs Act 1962 and also permitted the Department to adjudicate the issue on merits. Therefore the learned standing counsel appearing for the Customs Department informs this Court that he has been instructed by the Department to withdraw the appeal with liberty to proceed with adjudication on merits as directed by the Hon ble Supreme Court in Review Application petition No.400/21 filed by the Commissioner of Customs vs. Canon India Private Limited 2024 (11) TMI 391 - SUPREME COURT (LB) (Mangli Impex Case). The communication from the Department dated 29.01.2025 is also placed before this Court for consideration. The Customs Department is permitted to withdraw the appeal and proceed with the adjudication as per the Orders of the Hon ble Supreme Court in Review Application petition No.400/21 filed by the Commissioner of Customs vs. Canon India Private Limited - appeal dismissed as withdrawn.

Summary

The Madras High Court considered a case involving alleged duty evasion through undervaluation, where the Director of Revenue Intelligence issued a show cause notice to the respondent. The matter progressed through various customs authorities and reached the CESTAT. The CESTAT, citing a Delhi High Court case and considering the jurisdiction issue raised by the respondent, remanded the matter for further adjudication. However, upon notification that the Supreme Court had ruled in the Mangli Impex case that DRI officials are competent to issue show cause notices under the Customs Act, the Customs Department decided to withdraw the appeal and proceed with adjudication as directed by the Supreme Court. Consequently, the civil miscellaneous appeal was dismissed as withdrawn, with no costs awarded.