The Central Board of Indirect Taxes and Customs (CBIC) issued the direction that all the Show Cause Notices (SCNs) issued by the Directorate of Revenue Intelligence (DRI) must be kept pending.
The Board highlighted the decision of the Apex Court wherein it has ruled that the Additional Director General (ADG) of DRI is not the proper officer to issue Show Cause Notice 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.
The attention was drawn to the specific reference for seeking the Board’s direction with respect to SCN 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 Supreme Court.
“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,” the CBIC in the circular said.
The CBIC directed 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.
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