Commissioner of Customs (Imports) Vs C.K.Geever (Madras High Court)
Madras High Court held that issuance of show cause notice under Customs Act by Additional Director General of Central Excise Intelligence based on notification which does not specify any territorial jurisdiction is not sustainable in law.
Facts- A show cause notice was issued to R1 and R2 by the Additional Director General of Central Excise Intelligence (‘ADGCEI’), Directorate General of Central Excise Intelligence, Department of Revenue, alleging evasion of customs duty on used photocopier components and sub-assemblies that had been imported by Wintech under two Bills of Entry dated 10.06.2002 and 18.10.2002. The ADGCEI thus proposed to confiscate the goods seized and raised a demand of duty on the goods imported, under the provisions of the Customs Act, 1962.
After a detailed examination, the preliminary objection had been rejected by the Commissioner of Customs, vide the Order-in-Original and the proposals under the show cause notice had been confirmed. As against the same, appeals had been filed by R1 & R2 and by an order dated 06.10.2008, the appeal had been allowed. The present appeal challenges this order.
Conclusion- In the present case, the subject Notification under which the ADGCEI derives powers to issue show cause under Section 28(1) of the Customs Act does not specify any territorial jurisdiction and without such specification, he cannot be seen to be a ‘proper officer’ as required under the Customs Act. The argument that the ADGCEI is assumed to have all India jurisdiction in the absence of any restriction on the jurisdiction under the subject Notification does not appeal.
