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SUPREME COURT OF INDIA
Dhananjaya Y Chandrachud, Bela M Trivedi, JJ.
Commissioner of Customs, Ahmedabad - Appellant
Versus
M/s Suncity Strips and Tubes P Ltd. - Respondent
Civil Appeal No………… of 2022 [Diary No 7082 of 2020]
Decided On : 20-01-2022
Customs Act 1962 - Jurisdiction - Entrustment under Section 6 - Invalidity of proceedings initiated by Directorate of Revenue Intelligence
Fact of the Case:
The notice to show cause dated 30 October 2013 raising demands under the Customs Act 1962 was issued by the Additional Director General of the Directorate of Revenue Intelligence (Zonal Unit, Ahmedabad).
Finding of the Court:
The Court held that in the absence of an entrustment under Section 6 of the Customs Act 1962, an officer of the Directorate of Revenue Intelligence will not have jurisdiction to exercise the functions entrusted to Customs Officers under the provisions of the Act. Consequently, the entire proceeding initiated by the Directorate of Revenue Intelligence was deemed invalid, leading to the dismissal of the appeal filed by the Commissioner of Customs.
Issues: Jurisdiction of Directorate of Revenue Intelligence under Customs Act 1962
Ratio Decidendi: The absence of entrustment under Section 6 of the Customs Act 1962 renders the proceedings initiated by the Directorate of Revenue Intelligence invalid.
Final Decision: The appeal filed by the Commissioner of Customs is dismissed, and no opinion on the merits of the judgment of the Custom Excise Service Tax Appellate Tribunal is expressed.
ORDER :
1. Delay condoned.
2. In Canon India Private Limited vs Commissioner of Customs AIR 2021 SC 1699 : 2021 (376) ELT 3 (S.C.), a three-Judge Bench of this Court has held that in the absence of an entrustment under Section 6 of the Customs Act 1962, an officer of the Directorate of Revenue Intelligence will not have jurisdiction to exercise the functions entrusted to Customs Officers under the provisions of the Act. As a consequence of the above elucidation, the Court held that the entire proceeding which was initiated by the Additional Director General of the Directorate of Revenue Intelligence by issuing show cause notices was invalid.
3. In the present case, the notice to show cause dated 30 October 2013 raising demands under the Customs Act 1962 was issued by the Additional Director General of the Directorate of Revenue Intelligence (Zonal Unit, Ahmedabad).
4. In view of the decision of the three-Judge Bench in Canon India Private Limited (supra), the appeal which has been filed by the Commissioner of Customs in the present case will have to be and is accordingly dismissed.
5. Since the appeal has been dismissed on the above ground, it has not become necessary to express any opinion on the merits of the judgment of the Custom Excise Service Tax Appellate Tribunal dated 5 August 2019.
6. The appeal is accordingly dismissed.
7. Pending applications, if any, stand disposed of.
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