CESTAT follows SC Resolution in Canon India


dRI - Jurisdiction - Show-Cause Notice - CESTAT - SC Decision - Canon India - taxscan

The Delhi bench of Customs Excise and Service Tax Appellate Tribunal (CESTAT) has authorized the three customs enchantment made by Ashok Singhla and others concerning a show-cause discover they obtained reiterating the Supreme Courtroom determination that the Extra Director Normal (ADG) has no jurisdiction over issuing show-cause discover.

 The show-cause discover issued by the ADG of the Directorate of Income Intelligence (DRI), alleged that the appellants Ashok Singhla, KY Enterprises, and Kapil Dev Aggarwal misdeclared the outline of products in an try to grossly undervalue them. Discovering substance within the allegations of the show-cause discover, the Principal Commissioner of Customs imposed subsequent penalties on them

Ashok Singhla&Ors. argued that the ADG, DRI didn’t have the jurisdiction to concern the show-cause discover as he was not the “correct officer” beneath Part 28 of the Customs Act. To additional strengthen the argument, the Supreme Courtroom determination in Canon India Pvt. Ltd. vs. Commissioner of Customs, and Commissioner of Customs, Kandla vs. M/s. Agarwal Metals and Alloys have been cited“ We, subsequently, maintain that the complete continuing within the current case initiated by the Extra Director Normal of the DRI by issuing show-cause notices in all of the issues earlier than us are invalid with none authority of legislation and liable to be set-aside and the following calls for are additionally set- apart. ”

The Directorate of Income Intelligence defended its argument by calling into query the pending assessment petition of the judgment within the Canons India case.

The tribunal bench of CESTAT with Justice Dileep Gupta because the President and Justice P V Subba Rao because the Technical member, in favor of the appellants, said that the order handed by the Principal Commissioner of Customs can’t be issued and thereby, authorized the three customs enchantment.

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Ashok Singhla vs Principal Commissioner of Customs

Counsel for Appellant:   Advocates – Shri Somesh Arora,Abhishek Jaju

Counsel for Respondent:   Shri Sunil Kumar

CITATION:   2022 TAXSCAN (CESTAT) 214





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