Case Law Details
Sree Krishna Enterprises Vs Commissioner of Customs (CESTAT Chennai)
Appellant 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 Notification No. 44/2011-Cus (NT) dated 6.7.2011 as amended by Notification No. 53/2012 (NT) dated 21.6.2012 and 43/2019-Cus (NT) dated 18.6.2019 was issued under which the Addl. Directors General, Addl. Directors of Joint Directors, Deputy Directors or Assistant Directors in the DRI were assigned the function of the ‘Proper Officer’ under sec. 17, 28 and 28AAA and second proviso of section 124 of the Customs Act, 1962. This notification was issued by the CBEC under section 2(34) of the Customs Act, 1962 and not by Central Government under sec. 6 ibid. Therefore, the Show Cause Notice in the present case is ab initio void and any proceedings emanating 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).
So, 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 jurisdictional High Court in the case of Quantum Coal Energy P. Ltd. (supra) has applied the decision of the Hon’ble Supreme Court to hold that the Show Cause Notice issued by DRI is invalid and the proceedings initiated cannot sustain. The Tribunal in the case of Nitin Jatania vs. Commissioner of Customs (Adjudication), Mumbai reported in 2022-TIOL-61-CESTAT-MUM had occasion to analyse the very same issue as to whether DRI has jurisdiction to issue Show Cause Notice. Applying the decision of the Hon’ble Supreme Court in Canon India Pvt. Ltd. (supra), the Tribunal held that the Show Cause Notice issued by DRI is invalid. In the recent decision of Arun Kumar Agarwal Vs. Principal Commissioner of Customs (Import), New Delhi reported in 2022-TIOL-65-CESTAT-DEL similar view was taken.
Be that as it may, following the above decisions discussed above, we hold that the Show Cause Notice having been issued by DRI are ab initio void. The impugned orders cannot sustain and requires to be set aside.
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