Tribunal upholds DRI jurisdiction under Customs Act, remands case for further determination.

The Tribunal set aside the order challenging the jurisdiction of the Directorate of Revenue Intelligence (DRI) to issue show cause notices under the Customs Act. The Tribunal referred to a Delhi High Court case and subsequent amendments empowering DRI officers as proper officers. Acknowledging conflicting High Court decisions, the Tribunal remanded the matter to the original adjudicating authority to determine jurisdiction post a pending Supreme Court decision. The appellant's right to be heard was emphasized, maintaining the status quo until a final decision, ultimately allowing the appeals through remand.

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

Analysis:
The appellant filed appeals against an order dated 29/10/2007, challenging the jurisdiction of the Directorate of Revenue Intelligence (DRI) to issue show cause notices. The appellant cited a Delhi High Court case stating that DRI lacks competence to issue such notices. The Department's counsel defended the DRI's authority and requested a merit-based decision. The Tribunal considered the jurisdictional issue under the Customs Act, noting the appellant's reliance on a Supreme Court ruling regarding DRI officers not being proper officers. Subsequent amendments to the Customs Act post the Supreme Court decision and a notification assigning proper officer functions to DRI officers were discussed.

The Tribunal highlighted a notification from the Central Board of Excise and Customs (CBEC) empowering an Additional Director General of DRI as a proper officer from July 6, 2011, for issuing demand notices under Section 28. A subsequent amendment in 2011 retroactively assigned proper officer functions to various DRI officers. The Tribunal referred to conflicting High Court decisions on DRI officers' jurisdiction to issue show cause notices, with the matter reaching the Supreme Court for adjudication. The Tribunal also mentioned a recent Delhi High Court case dealing with a similar issue and granting liberty to review the challenge based on the outcome of the Supreme Court appeals.

Based on the Delhi High Court's decision in a similar case and considering all circumstances, the Tribunal set aside the impugned order and remanded the matter to the original adjudicating authority. The Tribunal directed the authority to first decide on jurisdiction post the Supreme Court's decision and then proceed on the merits, ensuring the appellant's right to be heard. The status quo was to be maintained until a final decision, ultimately allowing the appeals by way of remand.

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