Proper officer requirement under Customs Act: DRI notice under Section 28 was invalid for lack of jurisdiction.

A show cause notice under the Customs Act must be issued by the proper officer, meaning an officer specifically assigned the relevant customs functions by the Board or Commissioner under Section 2(34). Where the Directorate of Revenue Intelligence officer had no such assignment, the notice under Section 28 for recovery of non-levy or short levy of duty lacked jurisdiction and could not be sustained. The consequential proceedings and demands therefore fell with the invalid notice.

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Issues: Whether a show cause notice issued by the Directorate of Revenue Intelligence for recovery of customs duty under Section 28 of the Customs Act, 1962 is valid when the issuing officer is not the proper officer assigned the relevant functions under Section 2(34) of the Customs Act, 1962.

Analysis: The governing test under Section 2(34) is whether the officer issuing the notice has been specifically assigned the relevant customs functions by the Board or the Commissioner of Customs. Section 28 empowers only the proper officer to issue notice for non-levy or short levy of duty. Applying the settled principle that assignment of jurisdiction is essential, a notice issued by an officer lacking such assignment cannot sustain. The decisions relied upon confirm that DRI officers, without specific entrustment of functions, are not competent to invoke Section 28.

Conclusion: The show cause notice issued by DRI was invalid for want of jurisdiction, and the consequential proceedings and demands could not be sustained.

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