The Chandigarh bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the Additional Director General, DRI is not a “proper officer” for sending show cause notice for the payment of customs duty or interest under the provisions of the Customs Act, 1961.
Before the Tribunal, the appellants, Modern Insecticides Limited has challenged the order passed by Commissioner, Customs, Ludhiana wherein Show Cause Notice has been issued by Additional Director General, DRI, Ludhiana.
The appellants contended that the order needs to be quashed since Additional Director General, DRI, Ludhiana who is not a proper Officer to issue Show Cause Notice under Section 28 (4) read with Section 2 (34) of Customs Act, 1962.
Judicial member Ashok Jindal and Technical Member Sanjiv Srivastava observed that although Review Petition filed by the Revenue has been pending before the Hon’ble Apex Court in the above-said case but thereafter in the case of Commissioner of Customs Kandla vs. M/s. Agarwal Metals & Alloys (supra) again the Hon’ble Apex Court has followed up the decision of Canon India Pvt. Ltd. (supra) and hold that the Additional Director General, DRI is not a proper Officer within the meaning of Section 28 (4) read with Section 2 (34) of Customs Act, 1962.
“Further, the said decision has been followed by the Hon’ble Madras High Court in the case of Quantum Coal Energy Pvt. Ltd. (supra) and the jurisdictional Hon’ble High Court of Punjab & Haryana in the case of Steelman Industries vs. Union of India & Ors,” the Tribunal said.
Allowing the appeal, the Tribunal held that “the Additional Director General, DRI, Ludhiana is not a proper Officer to issue Show Cause Notice under Section 28 (4) read with Section 2 (34) of Customs Act, 1962. Therefore, the impugned proceedings are set aside.”
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