Proceedings for confiscation & penalty cannot sustain if duty demand fails

Schweitzer Engineering Laboratories Pvt Ltd Vs Commissioner of Customs (Import) (CESTAT Delhi)

Facts-

The appellant argues that the Additional Director General, Directorate of Revenue Intelligence didn’t have the jurisdiction to issue show cause notice as he was not proper officer under section 28 of the Customs Act. Further, appellant argues that since the notice issued by the Additional Director General, DRI is without jurisdiction, all the proceedings undertaken by the Department on this show cause notice is, therefore, without jurisdiction.

Conclusion-

Show cause notice was not issued by the proper officer. Accordingly, duty demand fails. The proposal for confiscation of goods and imposition of penalty cannot be segregated from the duty demand and, therefore, if the duty demand fails as the show cause notice was not issued by the proper officer, the proceedings for confiscation and penalty cannot survive.

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