2021 (4) TMI 788 - HC - Customs

Invalid Notification Invalidates Customs Officers' Functions under Customs Act

The Supreme Court held that a notification conferring Customs officers' functions on specific officers was invalid as it lacked the necessary authority ... Proper Officer under Customs Act - non-existing power under Section 2 (34) of the Customs Act - HELD THAT:- Dealing with the notification dated 2nd May, 2012, relied upon by the respondent, which confers the various functions referred to in Column (3) of the notification under the Customs Act on officers referred to in Column (2), the Hon’ble Supreme Court in M/S CANON INDIA PRIVATE LIMITED VERSUS COMMISSIONER OF CUSTOMS [2021 (3) TMI 384 - SUPREME COURT] held that the Section under which the notification has been issued does not confer any power on any authority to entrust any functions to the officers. It was also held that the notification which purports to entrust functions as proper officer under the Customs Act has been issued by the Central Board of Excise and Customs in exercise of non-existing power under Section 2 (34) of the Customs Act, hence was invalid. List this petition on 26th July, 2021. Issues: Challenge to Show Cause Notice under Customs ActAnalysis:1. The petitioner challenged a Show Cause Notice issued post-arrest, search, and seizure, seeking to set aside proceedings under various sections of the Customs Act. The challenge was based on a Supreme Court decision in a related case, emphasizing the necessity for the Central Government to empower officers of the Directorate of Revenue Intelligence with Customs officers' functions through Section 6 of the Act.2. The Hon'ble Supreme Court's ruling highlighted the invalidity of a notification dated 2nd May, 2012, which aimed to confer functions of a proper officer under the Customs Act on specific officers. It was held that the section under which the notification was issued did not grant any authority to assign such functions, rendering the notification invalid due to its issuance by the Central Board of Excise and Customs without the requisite power under Section 2(34) of the Customs Act.3. The respondent accepted the notice, and the court directed the filing of a reply affidavit within four weeks, with a rejoinder affidavit to follow within three weeks thereafter. The petition was scheduled for further hearing on 26th July 2021, and a stay was imposed on proceedings related to the Show Cause Notice until the next hearing date to be uploaded on the court's website.