Redington (India) Limited Vs Principal Additional Director General (Madras High Court)
The Central Government directed that the powers exercisable by the Central Board of Excise and Customs under Rule 3 of the Central Excise Rules, 2002 and Rule 3 of the Service Tax Rules, 1994, may be exercised by the following officers for the purpose of assignment of adjudication of notices to show cause issued under the provisions of the Central Excise Act, 1944 or the Finance Act, 1994, to the Central Officers subordinate to them:-
“a. The Principal Chief Commissioner of Central Excise and Service Tax; or
b. The Chief Commissioner of Central Excise and Service Tax”.
Several other Notifications were also issued before and after the impugned Notification was issued are detailed as under:-
|
S. No. |
Date | Notificati on | CEA 1944 | CER 2002 | F.A. 1994 | STR, 1994 | Remarks |
|---|---|---|---|---|---|---|---|
| 1. | 16/09/14 | 28/2008-C.E. (N.T.) | Sec.2(b) | Rule 3(1) |
Amended Not. No.38/2001 and 28/08 |
||
| 2. | 16/09/14 | 20/2014-S.T. | – do | Sec.65B(55) | Rule | Appoints Central Excise Officer) for local limits. Central Government the power of the Board to Principal Chief Commissioner/ CCCE /CCST Jurisdiction of various Officer. |
|
| 3. | 16/09/14 | 21/2014-S.T. | Sec.37A | Sec.83 | Rule 3 | Notification conferring pan India Jurisdiction to Officers of DGGI | |
| 4. | 16/09/14 | 22/2014- ST | Sec.2(b) | Rule 3 | Sec.65B (55) | Rule 3 | Notification setting out local limits for assessing officers (in supersession of 20/2014 and 21/2014 supra) |
| 5. | 09/06/17 | 12/2017-C.E. (N.T) | Sec.2(b) | Rule 3 | 65(B)55 | Rule 3 | |
| 6. | 09/06/17 | 13/2017-C.E. (N.T) | 37A | Rule 3 | 83 | ||
| 7. | 09/06/17 | 14/2017 – C.E. (N.T.) |
Therefore, the reasoning of the Hon’ble Supreme Court in Commissioner v. Sayed Ali 2011 (265) E.L.T. 17 (S.C.) and in Canon India Pvt Ltd Vs Commissioner, 2021 (376) E.L.T. 3 (S.C.) cannot be imported in the context of the Central Excise Act, 1944 and/or The Finance Act, 1944.
Therefore, without doubt, the officers from the Directorate are “Central Excise Officers” as they have been vested with the powers of central exercise officers.
Thus, the definition of “Central Excise Officer” in Section 2(b) of the Central Excise Act, 1944 was made applicable for Section 73 of Chapter V of the Finance Act, 1994 which prescribes a machinery for recovery of service tax not levied or paid or short-levied or short-paid or erroneously refunded.
As mentioned above, under Rule 3 of the Service Tax Rules, 1994, the Board can appoint any other officer to exercise power within the “local limits”. However, that would not mean that the officers of ”Directorate of Central Excise Intelligence (DGCEI) [presently The Directorate of GST Intelligence]” who are already “Central Excise Officers” under Notification No.38/2001-C.E. (N.T), dated 26.06.2001 for whole of India cannot exercise power pan India. Notification No.22/2014- ST, dated 16.09.2014 is to be read in conjunction with Notification No.38/2001-C.E. (N.T), dated 26.06.2001.
Therefore, the 2nd argument advanced on behalf of the petitioners as far as jurisdiction to issue Show Cause Notice cannot be accepted.
Therefore, the argument of some of the counsel for the petitioners that the officer of Directorate of Central Excise Intelligence (DGCEI) [presently The Directorate of GST Intelligence] are not “Central Excise Officer” and cannot exercise function Pan India cannot be accepted.
No restriction can be inferred on the powers of the Board while appointing the officers of the Directorate of Central Excise Intelligence (DGCEI) [presently The Directorate of GST Intelligence] to act as “Central Excise Officers”.
Thus, it cannot be said that the officers who has been vested with the powers under the impugned Notification No.22/2014- ST, dated 16.09.2014, are not the “Central Excise Officers”.
FULL TEXT OF THE JUDGMENT/ORDER OF MADRAS HIGH COURT
By this common order, all the below mentioned 19 cases are being disposed. Since the 19 cases are being disposed by this common order, it is divided into 7 Parts as follows:-
