The Calcutta High court while staying the Show Cause Notice for Customs duty demand held that DRI has no authority to issue any show-cause notice.
The writ petitioner, M/s. Aktel By Proprietorship Anand Kumar is aggrieved by the impugned show-cause notice issued on 13th April 2020 by the DRI under Section 124 read with Section 28 of the Customs Act, 1962.
Mr. Rajeev Kumar Agarwal, the counsel for the petitioners highlighted the judgment of the Supreme Court passed in M/s. Canon India Private Limited Versus Commissioner of Customs in Civil wherein it was held that the DRI has no authority to issue any show-cause notice under Section 28 of the Customs Act, 1962. In pursuance of M/s. Canon India Private Limited such show-cause notice is non-est in law and the person issuing the show-cause notice has no authority under the Customs Act to issue the said show-cause notice.
The Apex Court in the case Canon India Private Limited v. Commissioner held that if it was intended that officers of the DRI should be entrusted with functions 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 Customs Act.
The single-judge bench of Justice Md. Nizamuddin followed the precedent laid down in M/s. Canon India Private Limited by the Supreme Court and accordingly the impugned show-cause notice has stayed till 3rd January 2022, or until further orders, whichever is earlier.
The court listed the matter on 20th December 2021.
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