Dispute over DRI's Jurisdiction Settled through Consensual Agreement

The writ petition challenging the jurisdiction of the Principal Additional Director General of DRI to issue a Show Cause Notice was disposed of after the parties reached a consensual agreement. The adjudicating authority was directed to determine the jurisdiction as a preliminary issue, with the petitioner reserving the right to challenge the decision if necessary. The order was to be uploaded online and sent to the counsel via email.

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Issues:
Challenge to Show Cause Notice jurisdiction of Principal Additional Director General of DRI.

Analysis:
The petition challenged the legality of a Show Cause Notice dated 11th December 2020, a Notification dated 4th January 2021, and a Notice dated 15th June 2021. The petitioner argued that the Show Cause Notice was illegal as it was issued by the Principal Additional Director General of DRI, who, according to the judgment in M/S Canon India Private Ltd Vs Commissioner of Customs, was not the proper officer to issue such a notice under Section 28(4) of the Customs Act, 1962. The Senior Standing Counsel for the respondents accepted the notice on behalf of the respondents.

After some arguments, it was revealed that the petitioner had filed a reply to the Show Cause Notice, claiming that the adjudicating authority lacked jurisdiction to decide the matter. In response, the learned counsel for the respondents stated that the issue of jurisdiction would be decided as a preliminary issue by the adjudicating authority after providing an opportunity of hearing to the petitioner. Consequently, the petitioner decided not to pursue the petition further.

As a result of the consensual agreement between the parties, the writ petition and pending applications were disposed of with a direction to the adjudicating authority to determine the issue of jurisdiction as a preliminary matter. It was clarified that if the petitioner disagreed with the decision of the adjudicating authority, they could challenge it along with the Show Cause Notice in accordance with the law. The order was to be uploaded on the website immediately, and a copy was to be sent to the learned counsel via email.

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