Penalty can’t be levied via SCN issued by DRI as DRI does not have the jurisdiction to issue SCN
In M/s. Sattva CFS & Logistics Private Limited v. The Commissioner of Customs [ Custom Appeal No. 41681 of 2021 decided on July 15, 2021] M/s. Sattva CFS & Logistics Private Limited (“the Appellant”) contended that the Directorate of Revenue Intelligence (“DRI”) had issued Show Cause Notice (“SCN”) on the allegations of seizure of Red Sanders to the levy of penalty under Section 114 of the Customs Act, 1962 (“the Customs Act”).
The Adjudicating Authority (“AA”) had refrained from imposing penalty on the Appellant. The Commissioner of Customs (“the Respondent”) being aggrieved, filed appeal.
The Appellate Authority without considering the pleadings of the Respondent and without finding any fault with the findings of the AA, ordered de novo adjudication.
The Hon’ble CESTAT, Chennai relied on the judgement passed by the Hon’ble Supreme Court in case of M/s. Canon India Private Limited v. Commissioner of Customs [Civil Appeal No. 1827 of 2018 & 3 ors. dated March 09, 2021] and held that the penalty can’t be levied, since the SCN issued by the DRI is invalid.
Further, stated that there is no jurisdiction with the DRI to issue SCN in question and consequently, the whole proceeding is ab initio void. Thus, penalty cannot sustain.
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