Appellate Tribunal Overturns Customs Act Notice, Remands Case for Review

The Appellate Tribunal set aside the show-cause notice issued by the Directorate of Revenue Intelligence (DRI) under the Customs Act. The matter was remanded to the original adjudicating authority to determine jurisdiction post a Supreme Court decision and review the case on its merits. The assessee was granted an opportunity to be heard, and the status quo was to be maintained until a final decision was made. The impugned order was ultimately overturned, and the appeals were allowed for remand based on the Supreme Court's judgment in a specific case.

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Issues: Jurisdiction of DRI to issue show-cause notice under Customs Act

The judgment revolves around the jurisdiction of the Directorate of Revenue Intelligence (DRI) to issue show-cause notices under the Customs Act. The case originated from a show-cause notice issued by the DRI, which was challenged by the assessee-Respondent citing the Commissioner of Customs vs. Sayed Ali case. The Hon'ble Supreme Court's decision in the Sayed Ali case led to an amendment in the Customs Act, empowering the Additional Director General, DRI as the proper officer from July 6, 2011, to issue demand notices under Section 28. Subsequently, a retrospective amendment was made to assign proper officer functions to various DRI officers. The issue of jurisdiction was further litigated in various High Courts, resulting in conflicting decisions. The matter was eventually brought before the Hon'ble Supreme Court, which granted a stay on the Delhi High Court's judgment. Another case in the Hon'ble High Court of Delhi involving a notice issued by DRI was also considered, leading to the grant of liberty to review the challenge based on the outcome of appeals filed in the Supreme Court.

The Appellate Tribunal, considering the judgments and circumstances, set aside the impugned order and remanded the matter to the original adjudicating authority. The authority was directed to first decide on the jurisdiction issue post the Supreme Court decision in the Mangli Impex case, followed by a review of the case on merits with an opportunity for the assessee to be heard. The status quo was to be maintained until a final decision was reached. The impugned order was ultimately set aside, and the appeals were allowed for remand to the adjudicating authority after the Supreme Court's judgment in the Mangli Impex case.

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