9911796707
TMI Blog2022 (2) TMI 208X X X X Extracts X X X X X X X X Extracts X X X X ..... ence (DRI), Chennai Zonal Unit received information that M/s. Madurai Power Corporation Ltd. (appellant in Appeal No. C/40314/2015) procured Low Sulphur Fuel Oil from M/s. Indian Oil Corporation Ltd. (IOCL) for its power plant at Madurai on high sea sale basis. That during the course of import, apart from the high sea sales contract, IOCL also raised debit notes on the appellant towards facilitation charges @Rs. 400 per MT in the year 2008 and @ Rs. 600 per MT in the year 2009. Further, amounts in nature of ocean loss @ 0.5% and letter of credit charges @0.6% of CF value, demurrages whenever incurred in terms of Fuel Supply Agreement, 1997 read with side letter 2007 for sourcing Low Sulphur Fuel Oil from abroad by IOCL were paid by the appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ter of credit charges, bank guarantee charges and demurrage. The Show Cause Notice proposed to recover the alleged short-paid customs duty invoking extended period in terms of proviso to section 28(1) of the Customs Act, 1962. The Show Cause Notice proposed to include charges in terms of section 14(1) of Customs Act, 1962 read with Rule 3 and rule 10(1)EUR and Rule 10(2)(a) of the Customs Valuation Rules, 2007 along with interest and also proposed confiscation of the imported goods besides proposing to impose penalties. The proposals in the Show Cause Notice have been confirmed by the Commissioner of Customs in the impugned Order in Original. 4. She submitted that the Show Cause Notices are issued by DRI under section 28 of the Customs Act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tions of the Customs officers, it was imperative that the Central Government should have done so in exercise of its power under Section 6 of the Act. The reason why such a power is conferred on the Central Government is obvious and that is because the Central Government is the authority which appoints both the officers of the Directorate of Revenue Intelligence which is set up under the Notification dated 4-12-1957 issued by the Ministry of Finance and Customs officers who, till 11-5-2002, were appointed by the Central Government. The notification which purports to entrust functions as proper officer under the Customs Act has been issued by the Central Board of Excise and Customs in exercise of non-existing power under Section 2(34) of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... roneously refunded, and provides that : "28. Notice for payment of duties, interest, etc. - (1) When any duty has not been levied or has been short-levied or erroneously refunded, or when any interest payable has not been paid, part paid or erroneously refunded, the proper officer may, - (a) in the case of any import made by any individual for his personal use or by Government or by any educational, research or charitable institution or hospital, within one year; (b) in any other case, within six months, from the relevant date, serve notice on the person chargeable with the duty or interest which has not been levied or charged or which has been so short-levied or part paid or to whom the refund has erroneously been made, requiring h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hose functions by the Board or the Commissioner of Customs;' It is clear from a mere look at the provision that only such officers of customs who have been assigned specific functions would be 'proper officers' in terms of Section 2(34) the Act. Specific entrustment of function by either the Board or the Commissioner of Customs is therefore, the governing test to determine whether an 'officer of customs' is the 'proper officer'. 20. From a conjoint reading of Sections 2(34) and 28 of the Act, it is manifest that only such a Customs Officer who has been assigned the specific functions of assessment and reassessment of duty in the jurisdictional area where the import concerned has been affected, by either the Board or the Commissioner of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 9. We, therefore, direct the Registry of this court to send a copy of the judgment dated 9.3.2021 passed by the Hon'ble Supreme Court in Canon India (supra) to the Respondents herein, through electronic mode, so that corrective measures and steps are taken, in accordance with the judgment and citizens are not put to mental and financial harassment by filing petitions before this Court. 10. We also direct Respondent No. 1 herein / Principal Commissioner of customs, ICD, Patparganj, to circular a copy of the aforesaid judgment, to all the concerned officials in the department for information and compliance, as there can hardly be a doubt that the judgments of the Courts are binding not only on the private parties but also on the Govern ..... X X X X Extracts X X X X X X X X Extracts X X X X
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