DRI's Jurisdiction under Customs Act: Tribunal Remands Order Pending Supreme Court Decision

The tribunal considered the jurisdiction of the Directorate of Revenue Intelligence (DRI) to issue a show-cause notice under the Customs Act. After analyzing conflicting High Court decisions and relevant amendments, the tribunal set aside the order and remanded the matter to the original authority pending a Supreme Court decision. The appellant was granted the opportunity to present their case, with a review on the merits to follow. The appeal was allowed through remand, maintaining the status quo until a final decision is reached.

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

In the present appeal, the primary issue revolves around the jurisdiction of the Directorate of Revenue Intelligence (DRI) to issue a show-cause notice under the Customs Act. The appellant raised a preliminary plea citing a High Court judgment stating that DRI is not competent to issue such notices. The respondent, on the other hand, defended the order passed by the Commissioner of Customs and urged the tribunal to decide the matter on merit. The tribunal, after hearing both parties and examining the record, noted that the crux of the matter is the jurisdiction of DRI to issue the show-cause notice. The appellant contended that DRI officers were not proper officers as per the Customs Act, citing a Supreme Court decision. Subsequent amendments to the Customs Act and a notification by the Central Board of Excise and Customs (CBEC) were discussed, appointing DRI officers as proper officers for specific purposes. Another amendment was highlighted, assigning proper officer functions to DRI officers retrospectively. The tribunal acknowledged conflicting High Court decisions on this issue, leading to the matter being sub judice before the Supreme Court. A recent High Court judgment was also referenced, granting liberty to review the challenge based on the Supreme Court's decision in another case. Ultimately, the tribunal set aside the impugned order and remanded the matter to the original adjudicating authority to decide the jurisdiction issue post the Supreme Court's decision, followed by a review on the merits with the appellant's opportunity to be heard, maintaining the status quo until the final decision. The appeal was allowed by way of remand.

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