Case Law Details
Principal Commissioner, Customs Vs Dish TV India Limited (CESTAT Delhi)
At the outset learned Counsel representing the appellant importer, Shri Dalmia and Shri Tagra, submitted that the SCN was issued by DRI in these matters under section 28(4) of the Customs Act demanding differential duty in respect of the goods which were assessed and thereafter cleared by ‘the proper officers’ of the respective Customs Houses. The differential duty was demanded under section 28(4). As per the judgment of Hon’ble Supreme Court in the case of Cannon India Ltd. vs. Commissioner of Customs officers of DRI are not proper officers to issue SCNs under section 28 and therefore, entire demand needs to be set aside and the appeal should be decided in favour of the importer. SCNs are issued under the Customs Act either under Section 28 (to recover duty not levied, not paid, short levied, short paid or erroneously refunded) or under Section 124 (before confiscation of goods or imposition of penalties). On a specific query from the bench, learned counsel fairly submits that some portion of the SCN is a notice under section 124 inasmuch as it proposed confiscation of the imported goods under section 111(m) and imposition of penalties but submits that the sole ground on which the confiscation and penalties were proposed is that the goods were mis-declared, mis-classified and undervalued resulting in short payment of duty. If the demand under section 28 fails on ground of lack of jurisdiction, that basis having gone, the confiscation and penalties also do not survive. Therefore, the impugned order needs to be set aside in its entirety.
Since both sides agree that the case is covered by Cannon India, and that the SCN was issued by DRI, the impugned order arising out of the SCN cannot be sustained as per Cannon India, Agarwal Metals judgments of the Hon’ble Supreme Court, Guvidivan judgment of the Hon’ble High Court of Karnataka and Quantum Coal judgment of the Hon’ble High Court of Madras (Madurai bench), we do not find it necessary to examine the merits of the case.
FULL TEXT OF THE CESTAT DELHI ORDER
These four appeals have been filed by the Revenue, M/s. Dish TV India Ltd.1, Shri Rajeev Dalmia2, Chief Financial officer of the importer and Shri Virender Kumar Targra3, Vice President of the importer assailing the same Order in Original4dated 27.4.2020 passed by the Additional Director General (Adjudication) of Directorate of Revenue Intelligence5. Hence all these four appealsare being disposed of together.
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