TaxTMI 
TaxTMI 
2022 (2) TMI 208
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....re that the Directorate of Revenue Intelligence (DRI), Chennai Zonal Unit received information that M/s. Madurai Power Corporation Ltd. (appellant in Appeal No. C/40314/2015) procured Low Sulphur Fuel Oil from M/s. Indian Oil Corporation Ltd. (IOCL) for its power plant at Madurai on high sea sale basis. That during the course of import, apart from the high sea sales contract, IOCL also raised debit notes on the appellant towards facilitation charges @Rs. 400 per MT in the year 2008 and @ Rs. 600 per MT in the year 2009. Further, amounts in nature of ocean loss @ 0.5% and letter of credit charges @0.6% of CF value, demurrages whenever incurred in terms of Fuel Supply Agreement, 1997 read with side letter 2007 for sourcing Low Sulphur Fuel Oi....
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....e added to the finalized value along with letter of credit charges, bank guarantee charges and demurrage. The Show Cause Notice proposed to recover the alleged short-paid customs duty invoking extended period in terms of proviso to section 28(1) of the Customs Act, 1962. The Show Cause Notice proposed to include charges in terms of section 14(1) of Customs Act, 1962 read with Rule 3 and rule 10(1)EUR and Rule 10(2)(a) of the Customs Valuation Rules, 2007 along with interest and also proposed confiscation of the imported goods besides proposing to impose penalties. The proposals in the Show Cause Notice have been confirmed by the Commissioner of Customs in the impugned Order in Original. 4. She submitted that the Show Cause Notices are is....
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....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 under the Customs Act has been issued by the Central Board of Excise and Customs i....
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....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 interest which has not been levied or charge....
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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 ....
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....d 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 conce....