FinMin Accept SC
Judgement in Canon Case to Set Aside DRI Show Cause Notices under Sec 28, Only
Jurisdiction Commissionerates to Issue Notices
[CBIC Instruction No.04/2021-Customs dated 17 March 2021]
Subject: Show Cause Notice (SCN) dated 19.03.2019 issued
by DRI against Sh. Anil Aggarwal and 11 others – Directions to keep SCN pending.
Reference is invited to the letters from your office
drawing attention to the judgement dated 09.03.2021 of the Hon'ble Supreme
Court in Civil Appeal No. 1827 of 2018 in the case of M/s Canon India Private
Limited vs Commissioner of Customs. Vide the said judgement, the Hon`ble Apex
Court has ruled that the Additional Director General (ADG) of Directorate of
Revenue Intelligence (DRI) is not the proper officer to issue Show Cause Notice
(SCN) under sub-section (4) of section 28 of the Customs Act, 1962. The Apex
Court has concluded that the entire proceeding in the present case initiated by
ADG (DRI) by issuing SCN, as invalid and without any authority of law. The Apex
Court has accordingly set aside the subject SCN.
2. Further, attention is drawn to the specific reference
for seeking Board’s direction with respect to SCN dated 19.03.2019 against Sh.
Anil Aggarwal and 11 others where the adjudication of the SCN would get barred
by the limitation of time on 18th March, 2021 under sub-section (9) of section
28 of the Customs Act, 1962, on account of the inability to proceed further due
to the said judgement of the Hon`ble Supreme Court.
3. The matter has been examined. The implications of the
said judgement are under active examination in the Board. Therefore, the Board
has decided that for the present and until further directions, the said SCN may
be kept pending.
4. Further, all the fresh SCNs under Section 28 of the
Customs Act, 1962 in respect of cases presently being investigated by DRI are
required to be issued by jurisdictional Commissionerates
from where imports have taken place.
5. Difficulties, if any, may please be brought to the
notice of Board.
F.No.450/72/2021-Cus-IV