AI Drafter 
TaxTMI 
TaxTMI 
2022 (1) TMI 1142
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....5.5.2013, at the office premises of M/s. Sree Krishna Enterprises and Mining and Machinery Services (appellant in C/42417/2015). Certain documents were recovered and statements were recorded. After investigations, Show Cause Notice dated 20.2.2014 was issued by the DRI. After due process of law, the adjudicating authority passed an order rejecting the assessable value and confirmed the demand of duty after reassessment. Besides this, inter alia, there was order of confiscation of goods, imposition of redemption fine as well as penalties. Aggrieved by such order, the appellants are now before the Tribunal. 2. On behalf of M/s. Sree Krishna Enterprises, learned counsel Shri B.V. Kumar appeared and argued the matter. He submitted that the Show Cause Notice having been issued by DRI, the order passed cannot sustain in terms of the decision of the Hon'ble Supreme Court in the case of Canon India Pvt. Ltd. Vs. Commissioner of Customs reported in 2021 (376) ELT 3 (SC). In the said case, it was held by the Hon'ble Supreme Court that the entire proceedings initiated by the ADG, DRI by issuing Show Cause Notices are invalid and without any authority of law. He submitted that Notif....
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....he DRI is not sustainable and therefore the impugned orders are to be set aside on this sole ground itself. No arguments were advanced on merits of the case. 5. Heard both sides. 6. The main argument advanced by the learned counsels is that the Show Cause Notice having been issued by DRI is not sustainable in law in terms of the decision of the Hon'ble Supreme Court in the case of Canon India Pvt. Ltd. (supra). The Hon'ble Supreme Court in the said case held as under:- "21. If it was intended that officers of the Directorate of Revenue Intelligence who are officers of Central Government should be entrusted with functions of the Customs officers, it was imperative that the Central Government should have done so in exercise of its power under Section 6 of the Act. The reason why such a power is conferred on the Central Government is obvious and that is because the Central Government is the authority which appoints both the officers of the Directorate of Revenue Intelligence which is set up under the Notification dated 4-12-1957 issued by the Ministry of Finance and Customs officers who, till 11-5-2002, were appointed by the Central Government. The notific....
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....or which has been so short-levied or part paid or to whom the refund has erroneously been made, requiring him to show cause why he should not pay the amount specified in the notice : Provided that where any duty has not been levied or has been short-levied or the interest has not been charged or has been part paid or the duty or interest has been erroneously refunded by reason of collusion or any wilful misstatement or suppression of facts by the importer or the exporter or the agent or employee of the importer or exporter, the provisions of this sub-section shall have effect as if for the words 'one year' and 'six months', the words 'five years' were substituted." 18. It is plain from the provision that the 'proper officer' being subjectively satisfied on the basis of the material that may be with him that customs duty has not been levied or short levied or erroneously refunded on an import made by any individual for his personal use or by the Government or by any educational, research or charitable institution or hospital, within one year and in all other cases within six months from the relevant date, may cause service of notice on the person chargeable, requir....
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....in Canon India (supra) has not been either read by the concerned officials or has not been understood in the correct perspective. As a result, this Court is flooded with litigation on the same issue and we cannot help but observe that it is the action of the Respondents in not applying the binding dicta of the Hon'ble Supreme Court, which is breeding unnecessary litigation. 9. We, therefore, direct the Registry of this court to send a copy of the judgment dated 9.3.2021 passed by the Hon'ble Supreme Court in Canon India (supra) to the Respondents herein, through electronic mode, so that corrective measures and steps are taken, in accordance with the judgment and citizens are not put to mental and financial harassment by filing petitions before this Court. 10. We also direct Respondent No. 1 herein / Principal Commissioner of customs, ICD, Patparganj, to circular a copy of the aforesaid judgment, to all the concerned officials in the department for information and compliance, as there can hardly be a doubt that the judgments of the Courts are binding not only on the private parties but also on the Government officials dealing with matters in their official ....