2024 (12) TMI 543 - HC - Customs

DRI has jurisdiction to issue show cause notice under Customs Act Section 28, petition disposed of

Gujarat HC disposed of petition challenging DRI's jurisdiction to issue show cause notice under Customs Act, 1962. Court relied on SC decision in ... Jurisdiction of respondent (DRI) to issue the notice - HELD THAT:- The Hon’ble Supreme Court in case of Commissioner of Customs Vs. Canon India Pvt. Ltd. [2024 (11) TMI 391 - SUPREME COURT (LB)] has held that the respondent No. 3 would have jurisdiction to issue the show cause notice under the provision of Customs Act, 1962 and therefore, the petition may be disposed of in terms of the directions issued by the Hon’ble Apex Court in the aforesaid decision. The petition is disposed of by restoring the notice to the Adjudicating Authority for adjudication by a proper officer under Section 28 of the Customs Act, 1962. In view of the above, this petition stands disposed of. Issues:Jurisdiction of respondent No. 3 to issue show cause notices under the Customs Act, 1962.Analysis:The petitioners sought writs to quash Show Cause Notices issued by respondent No. 3, claiming lack of jurisdiction. The petition relied on a decision by the Hon'ble Apex Court in a previous case. However, a subsequent judgment by the Hon'ble Supreme Court clarified that respondent No. 3 did have jurisdiction to issue the notices under the Customs Act, 1962. The Hon'ble Apex Court's decision highlighted various legal aspects, including the appointment of DRI officers as customs officers, empowering them to issue show cause notices. The judgment emphasized the importance of Circulars and Notifications empowering DRI officers and the statutory scheme of the Customs Act. It also addressed the issue of limitation and the retrospective validation of show cause notices under Section 28 of the Act. The judgment overturned a previous decision by the Delhi High Court and endorsed the view of the High Court of Bombay in a related case. It further clarified the validity of Section 97 of the Finance Act, 2022 and affirmed the competency of certain officers to issue show cause notices under Section 28. The judgment provided detailed instructions on how pending cases challenging the jurisdiction of proper officers should be handled by various forums.Conclusion:The Hon'ble Apex Court disposed of the petition by restoring the notice to the Adjudicating Authority for adjudication by a proper officer under Section 28 of the Customs Act, 1962. The petition was thus deemed disposed of, and the rule was discharged with no order as to costs.