TaxTMI 
TaxTMI 
TaxTMI 
2022 (1) TMI 1142
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.... Proprietor. They are importers of Tungsten Carbide Tips and TC Rock Drill Bits from China. On specific intelligence gathered by the Directorate of Revenue Intelligence (DRI), Hyderabad Regional Unit that M/s. Sree Krishna Enterprises was resorting to gross undervaluation of the goods and thereby evading payment of appropriate duties of customs, simultaneous, searches were conducted by the officers on 15.5.2013, 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 reje....
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....manating from such Show Cause Notice are also without authority of law as held by the Hon'ble Supreme Court in the case of Canon India Pvt. Ltd. (supra). 3. He argued that the above three Judges Bench judgment was followed by the Hon'ble Supreme Court in the case of CC, Kandla Vs. Agarwal Metals and Alloys reported in 2021 (376) ELT 7 (SC). The Hon'ble jurisdictional High Court has followed the same in Quantum Coal Energy P. Ltd. Vs. CC, Tuticorin reported in 2021 (377) ELT 488 (Mad.). The Hon'ble High Court of Delhi in a writ petition filed by Rani Enterprises Vs. Principal Commissioner of Customs, Patparganj in W.P. (C) No. 11721/2021 decided on 12.10.2021 observed that the decision of the Hon'ble Supreme Court has to be ....
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....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 notification which purports to entrust functions as proper officer u....
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.... the Act, which is relevant for our purpose, provides for issue of notice for payment of duty that has not been paid, or has been short-levied or erroneously refunded, and provides that : "28. Notice for payment of duties, interest, etc. - (1) When any duty has not been levied or has been short-levied or erroneously refunded, or when any interest payable has not been paid, part paid or erroneously refunded, the proper officer may, - (a) in the case of any import made by any individual for his personal use or by Government or by any educational, research or charitable institution or hospital, within one year; (b) in any other case, within six months, from the relevant date, serve notice on the person chargeable with the duty or inte....
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.................... (34) 'proper officer', in relation to any functions to be performed under this Act, means the officer of customs who is assigned those functions by the Board or the Commissioner of Customs;' It is clear from a mere look at the provision that only such officers of customs who have been assigned specific functions would be 'proper officers' in terms of Section 2(34) the Act. Specific entrustment of function by either the Board or the Commissioner of Customs is therefore, the governing test to determine whether an 'officer of customs' is the 'proper officer'. 20. From a conjoint reading of Sections 2(34) and 28 of the Act, it is manifest that only such a Customs Officer who has been assigned the specific functions of ass....
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.... 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 th....