Customs jurisdiction over short-levy demands on imported imports through a port prevails; Central Excise cannot assume authority.

Short-levy demands on imported goods cleared through a port must be raised and adjudicated by the proper customs officer having jurisdiction over that port. Central Excise jurisdiction is limited to the narrow situation contemplated by the import-concession rules, namely where imported goods are diverted after import and fall within the importer's manufacturing-facility jurisdiction. A Commissioner of Central Excise cannot assume customs jurisdiction over goods cleared through Chennai port, and proceedings cannot be transferred by corrigendum to another Commissioner without specific Board authorisation.

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Issues: Whether the Commissioner of Central Excise had jurisdiction to issue and adjudicate a demand for short levy on goods imported through Chennai port, and whether the proceedings could be transferred for adjudication by the Commissioner of Customs.

Analysis: The dispute concerned imported goods cleared through Chennai port under concessional duty notifications and the rules governing import of goods at concessional rate for manufacture of excisable goods. The proper officer competent to demand short-levied duty on imports through the port was the Commissioner of Customs, Chennai, or officers subordinate to him. The jurisdiction of Central Excise authorities under the import-concession rules was limited to cases where imported goods were diverted after import and were within the importer's manufacturing-facility jurisdiction. The Commissioner of Central Excise could not assume customs jurisdiction for imported goods cleared through the port, and the Tribunal could not direct transfer of such proceedings to another Commissioner by way of corrigendum in the absence of specific Board authorisation.

Conclusion: The demand proceedings were within the exclusive jurisdiction of the customs authorities at Chennai port, and the Commissioner of Central Excise lacked authority to adjudicate them.

Ratio Decidendi: Short-levy demands on imported goods cleared through a port must be issued and adjudicated by the proper customs officer having jurisdiction over that port, unless a valid statutory authorisation provides otherwise; Central Excise jurisdiction arises only in the limited situation contemplated by the import-concession rules.

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