Supreme Court stays Delhi High Court judgment on DRI Officers' jurisdiction under Customs Act

The Supreme Court stayed the Delhi High Court's judgment on the jurisdiction of DRI Officers to issue show cause notices under the Customs Act, indicating the issue was pending before the Supreme Court. The High Court of Delhi granted liberty to review depending on the Supreme Court's decision. The Tribunal set aside the order and remanded the matter to the original authority to decide on jurisdiction post the Supreme Court's ruling, maintaining status quo. The cases were remanded for fresh decisions, aligning with the Tribunal's directive.

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

Analysis:
The appeals were filed against a common Order-in-Original passed by the Commissioner of Central Excise. The primary issue in the present appeal was regarding the jurisdiction of the Directorate of Revenue Intelligence (DRI) Officers to issue show cause notices under the Customs Act. The appellant contended that, as per a Supreme Court decision, DRI officers were not proper officers under the Customs Act. Subsequently, amendments were made to the Customs Act in 2011, empowering the Additional Director General of DRI to issue demand notices under Section 28. However, conflicting views emerged from various High Courts on the issue. The Delhi High Court held that DRI officers were not empowered to issue show cause notices for the period before April 8, 2011. On the other hand, the Mumbai High Court and the High Court of Telangana and Andhra Pradesh took a contrary view. The matter eventually reached the Supreme Court, which stayed the Delhi High Court's judgment, indicating that the issue was sub-judice before the Supreme Court.

Further Details:
The High Court of Delhi, in a separate case, granted liberty to a petitioner to review the challenge depending on the outcome of appeals filed by the Union of India in the Supreme Court against the judgment of the Court in a related case. Following the Delhi High Court's decision in another case and considering the totality of facts and 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 the issue of jurisdiction after the Supreme Court's decision and then proceed on the merits of the case, ensuring the appellant's right to be heard. The status quo was to be maintained until a final decision was reached. In alignment with the Tribunal's decision, the matters were remanded for a fresh decision, with the agreement of both parties, leading to the disposal of the appeals accordingly.

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