Right of DRI to issue SCN: Delhi HC restores Appeals before CESTAT [Read Order]

The Delhi High Court restored appeals before the Customs, Excise and Service Tax Appellate Tribunal ( CESTAT ) in the matter regarding the right of the Directorate of Revenue Intelligence ( DRI ) to issue the show cause notice ( SCN ).

The appeals raise a question which has been subject matter of several petitions and in identical circumstances, the cases have been remitted to the Customs Excise and Service Tax Appellate Tribunal ( CESTAT ). Three similar appeals were also listed before the Court.

The respondents were directed to be served through publication vide order dated 24.05.2023. Publication was duly effected and order dated 10.01.2024 records that none had appeared on behalf of respondents despite service through publication. These appeals impugned the final orders dated 09.06.2017 and 15.06.2017 respectively.

The Coordinate Bench of the court has disposed of several appeals, finding that the orders passed by CESTAT to the aforesaid effect were not justified and further directing the CESTAT to decide the appeals on merit, including the question of jurisdiction, uninfluenced by the decision of this case of Mangali Impex Ltd, as the operation in the said order has been stayed by the Supreme Court.

A Division Bench of Justices Sanjeev Sachdeva and Ravinder Dudeja observed that “The orders impugned in these appeals were passed by the CESTAT. By virtue of the said impugned orders, CESTAT has remanded the matter to the Adjudicating Authority for deciding the issue on the question of jurisdiction after the Supreme Court delivers the decision in civil appeal preferred against the decision of this court in Mangali Impex Ltd vs Union of India And Ors.”

“CESTAT is directed to decide the appeals on merits, including on the question of jurisdiction of the Commissioner of Customs (Preventive)/ Directorate of Revenue Intelligence ( DRI ) to issue the show cause notices, uninfluenced by the decision rendered by this court in Mangali Impex Ltd (Supra). It is clarified that this court has not expressed any opinion on merits and CESTAT would be at liberty to take such view as it considers appropriate” the Court directed.

To Read the full text of the Order CLICK HERE

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