In a major relief to Dish TV, the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Delhi Bench ruled that Show Cause Notice issued by an officer of DRI demanding Customs Duty is not sustainable.
A show cause notice was issued by DRI answerable to the Principal Commissioner of Customs in respect of the goods imported through the respective ports. Central Board of Excise and Customs has appointed Additional Director General (Adjudication), DRI as the common Adjudicating Authority to adjudicate upon the matters in the SCN by Notification dated 1.2.2019 read with 11/2020 Cus (NT) dated 2.1.2020. Accordingly, the impugned order was passed.
The Revenue agrees that the show cause notice was issued by the DRI in this case and the case is covered by the Cannon India. He submitted that a Review petition has been filed by the Revenue against the judgment of Hon’ble Supreme Court in Cannon India which is pending before the Supreme Court.
The appellant countered and argued that mere filing of review petition before the Hon’ble Supreme Court does not nullify the ratio of the judgment already passed by the Hon’ble Supreme Court. Therefore, the matter may be decided accordingly without awaiting for outcome of the review petition.
The coram of Judicial Member, Sulekha Beevi C.S. and Technical Member, P.V. Subba Rao held that the case is covered by Cannon India, and that the SCN was issued by DRI, the impugned order arising out of the SCN cannot be sustained as per Cannon India, Agarwal Metals judgments of the Supreme Court, Guvidivan judgment of the High Court of Karnataka and Quantum Coal judgment of the Hon’ble High Court of Madras (Madurai bench) and did not find it necessary to examine the merits of the case.
The Tribunal allowed the writ petition and quashed the impugned order as the show cause notice issued by an officer of DRI demanding duty under section 28.
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