The Delhi Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has quashed the show-cause notice issued by the Additional Director General, DRI as he is not the proper officer to recover Customs Duty.
The appellant, M/s. Ajanta Overseas assailed the order dated 03.12.2020 passed by the Commissioner of Customs (Appeals), by which the appeal filed by the appellant has been dismissed but the appeal filed by the department has been partially allowed. It needs to be noted that the demand raised in the show cause notice dated 29.03.2018 issued by the Additional Director General, Directorate of Revenue and Intelligence, New Delhi, under sections 28 of the Customs Act 19623 was confirmed by the Additional Commissioner by order dated 18.03.2019.
It has been submitted by Ms. Vibha Narang, learned counsel appearing for the appellant that the Additional Director General, DRI did not have the jurisdiction to issue the show cause notice as he was not the proper officer under section 28 of the Customs Act to issue the notice and in support of this contention learned counsel placed reliance upon decisions of the Supreme Court in Canon India Pvt. Ltd. vs. Commissioner of Customs and Commissioner of Customs, Kandla vs. M/s. Agarwal Metals and Alloys. The coram headed by the President, Justice Dilip Gupta, and Technical Member, P.V.Subba Rao held that The show-cause notice dated 29.03.2018 issued by the Additional Director General, DRI is, therefore, without jurisdiction as the said officer was not the proper officer and, therefore all proceedings undertaken by the Department on this show cause notice is, therefore, without jurisdiction. The order dated 03.12.2020 passed by the Commissioner of Customs (Appeals), therefore, cannot be sustained.
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