TaxTMI 
TaxTMI 
2008 (10) TMI 412
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.... the enhanced value based on the Chartered Engineer's certificate. On the grounds of unlicensed import and undervaluation by the importer, the adjudicating authority imposed fine (in lieu of confiscation) and penalties. The party obtained clearance of the goods on payment of the adjudged dues. Subsequently, the Chennai Unit of the Directorate-General of Central Excise Intelligence (DGCEI), in Jan'03, launched investigations into the above imports. The residential premises of Sri C.K. Geever, appellant in Appeal No. C/462/04, were searched and statements recorded from him. Statements of Sri A.M. Amiruddin (importer), Shri Ravi Raj Pandla (Sales and Service Manager of the importer) etc. were also recorded. On the basis of these statements and the documentary evidence collected from Shri C.K. Geever's residence, DGCEI framed a case against the appellants to the effect (a) that Wintech Inc. had declared lesser quantity and value for the goods covered by the two Bills of Entry so as to evade Customs duty (b) that they had not declared a few items of import (c) that the goods imported by them were liable for confiscation under Section 111(d) and (m) of the Customs Act (d) that they were ....
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....p; I order confiscation of seized goods, viz. 30 sub-assemblies of photocopiers, totally valued at Rs. 4,34,000/- under Section 111(d) and Section 111(m) of the Customs Act, 1962. However, I give an option to the owner of the said confiscated goods viz. 30 sub-assemblies of photocopiers, to redeem the same on payment of a fine of Rs. 2,00,000/- (Rupees two lakhs only) under Sec. 125 of the Customs Act, 1962. In the event of exercise of the said option of redemption by the owner of the said goods, he shall also be liable to pay the duty along with interest payable thereon under Sec. 28AB of the Customs Act, 1962 and other charges payable on the same in terms of Section 125 of the Customs Act, 1962. (3) In terms of Sec. 28(2) of the Customs Act, 1962, I confirm the demand for differential duty of Rs. 27,61,075/- (Rupees Twenty seven lakhs sixty-one thousand and seventy-five only) payable in respect of the goods imported and cleared vide bills of entry No. 401387 dated 10-6-2002 and 433667 dated 18-10-2002 (excluding the duty payable on the 30 sub-assemblies of Photocopiers confiscated as above) as per the Annexure to this order along w....
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....specified for the appointees to exercise powers and discharge duties as officers of Customs Notification No. 30/97-Cus. (N.T.), dated. 7-7-1997, Notification No. 17/02-Cus. (N.T.), dated. 7-3-2002, Notification No. 83/04-Cus. (N.T.), dated. 30-6-2004 etc. The ld. SDR argued that, where any area of jurisdiction was not specified by the Central Government in the Notification issued under Section 4(1) of the Customs Act, the officers appointed by the Government should be deemed to have 'All India jurisdiction' as the Customs Act extended to 'the whole of India' vide sub-section (2) of Section 1 of the Act. The ld. SDR also claimed support from the Tribunal's Larger Bench decision in Konia Trading Co. v. Commissioner of Customs, Jaipur, 2004 (170) E.L.T. 51 (Tri.-LB). He also produced copies of a letter dated 4-12-2007 issued in Dy. No. 1561/JS(Cus)/2007 of the CBEC. This letter was addressed to the ADGCEI, Mumbai. Paragraphs 3 to 5 of this letter quoted by SDR are reproduced below :- "3. The various classes of officers specified for the purpose of Customs are given in Section 3 of the said Act. Section 4(1) of the Customs Act, 1962 also provides for the powers of the....
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.... jurisdictional objection raised by the appellants be overruled. 4. We have given careful consideration to the submissions. The subject SCN was issued by the ADGCEI, Chennai Zonal Unit as a "Commissioner of Customs" appointed by the Central Government under sub-section (1) of Section 4 of the Customs Act vide Notification No. 31/2000-Cus. (N.T.), dated 9-5-2000 as amended by Notification No. 69/2000-Cus. (N.T.), dated 23-11-2000. The text of Notification No. 31/2000-Cus. (N.T.) as amended by Notification No. 69/2000-Cus. (N.T.) is as follows :- In exercise of the powers conferred by sub-section (1) of section 4 of the Customs Act, 1962 (52 of 1962), the Central Government hereby appoints the officers of the Directorate General of Central Excise Intelligence specified in column (2) of the Table below as the officers of customs and invests them all the powers exercisable by an officer of customs or the rank specified in the corresponding entry in the column (3) of the said Table, such powers being the powers of an officer of customs conferred under the said Act. TABLE Serial No. Officers of the Directorate General of Central Excise Intelligence Rank of the Officer of Custo....
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.... [sub-section (1) of Section 5] are with the Board. In the instant case, the SCN was issued by the ADGCEI under Section 28(1) of the Customs Act on 8-8-2003 without territorial jurisdiction having been specified for him by the Board under Section 5(1) of the Act to function as "Commissioner of Customs" appointed under Section 4(1). With no territorial jurisdiction demarcated for him by the Central Government under Section 4(1) or by the Board under Section 5(1), the ADGCEI did not become "proper officer" to exercise power under Section 28(1). 5. It appears, the ADGCEI assumed "all India Jurisdiction" under Notification No. 31/2000-Cus. (N.T.) as amended by Notification No. 69/2000-Cus. (N.T.). It has been strenuously argued by the Revenue through the Board's letter dated 4-12-2007 and the SDR's submissions that, as no area of jurisdiction was specified in the said Notification, the ADGCEI could function as "Commissioner of Customs" anywhere in the country. If this Argument is accepted, the DGCEI, Chennai Unit, can assume jurisdiction under Section 28 as "Commissioner of Customs" to issue SCN and pass order in adjudication thereof in relation to an import or export made throug....