Territorial jurisdiction in customs proceedings: DGCEI notice over Tuticorin imports found prima facie without authority

Territorial jurisdiction for customs proceedings was examined in relation to imports cleared through Tuticorin Port. The customs notification applicable to Tuticorin was read as limiting the powers of the Commissioner of Customs, Tuticorin and his subordinate officers to that port and its imports, and no notification was shown appointing DGCEI officers as customs for India-wide action over such imports. The Revenue's notifications did not override that territorial limitation. On a prima facie view, the show-cause notice issued by the DGCEI officer was without jurisdiction, leading to waiver of pre-deposit and stay of recovery.

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Issues: Whether the show-cause notice issued by an officer of DGCEI at Mumbai was without jurisdiction for imports cleared through Tuticorin Port, warranting waiver of pre-deposit and stay of recovery.

Analysis: The jurisdictional objection was tested against the notifications relied on by both sides. The notification governing customs officers at Tuticorin was read as confining the powers of the Commissioner of Customs, Tuticorin and his subordinate hierarchy to that port and its imports. No notification was shown appointing DGCEI officers as officers of customs for the whole of India so as to authorise initiation of proceedings for imports through Tuticorin. In contrast, the notifications referred to on behalf of the Revenue did not displace the territorial limitation appearing from the customs notification applicable to Tuticorin. On a prima facie view, therefore, the notice was issued by an lacking jurisdiction over the subject-matter.

Conclusion: The show-cause notice was held prima facie to be without jurisdiction, and waiver of pre-deposit and stay of recovery were granted.

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