Case Law Details
Dhiren Enterprise Vs Commissioner of Customs (Adjudication) (CESTAT Mumbai)
Penalty demand and proposal of confiscation cannot be separated from Customs duty demand
The Hon’ble Customs, Excise & Services Tax Appellate Tribunal, Bangalore (CESTAT) in the matter of M/s. Dhiren Enterprise v. Commissioner of Customs (Adjudication), Mumbai [Final Order No. A/87107/2021 dated November 09, 2021], ruled that the proposal for confiscation and penalty cannot be segregated from duty demand and therefore the proceedings for confiscation and imposition of penalty cannot be sustained. Further the Additional Director General, DRI did not have the jurisdiction to issue the show cause notice as the said officer was not the proper officer under Section 29 of the Customs Act, 1962 (“the Customs Act”) and therefore all proceedings undertaken by the Department on this show cause notice is without jurisdiction.
M/s. Dhiren Enterprise (“the Appellant”) filed the current appeal being aggrieved of the order dated May 31, 2012 passed by the Commissioner of Customs (Adjudication), by which the demand raised in the show cause notice issued by the Additional Director General, Directorate of Revenue and Intelligence (“DRI”) Mumbai under Sections 28 and 124 of the Customs Act has been confirmed.
The Appellant submitted that the Additional Director General, DRI did not have the jurisdiction to issue the show cause notice as he was not the proper officer under section 28 of the Customs Act to issue the notice and relied upon decisions of the Supreme Court in Canon India Pvt. Ltd. v. Commissioner of Customs [2021 (376) E.L.T. 3 (S.C.)] and Commissioner of Customs, Kandla v. M/s. Agarwal Metals and Alloys [2021 (9) TMI 316- Supreme Court].
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