Messrs Rex-Tone Industries Ltd. vs Union Of India
2021 Latest Caselaw 10632 Guj

    C/SCA/10336/2021                                             ORDER DATED: 04/08/2021




           IN THE HIGH COURT OF GUJARAT AT AHMEDABAD

            R/SPECIAL CIVIL APPLICATION NO. 10336 of 2021

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                       MESSRS REX-TONE INDUSTRIES LTD.
                                   Versus
                               UNION OF INDIA
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Appearance:
AMAL PARESH DAVE(8961) for the Petitioner(s) No. 1,2
MR PARESH M DAVE(260) for the Petitioner(s) No. 1,2
for the Respondent(s) No. 1,2,3
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 CORAM:HONOURABLE THE CHIEF JUSTICE MR. JUSTICE
       VIKRAM NATH
       and
       HONOURABLE MR. JUSTICE BIREN VAISHNAV

                                  Date : 04/08/2021

                        ORAL ORDER

(PER : HONOURABLE THE CHIEF JUSTICE MR. JUSTICE VIKRAM NATH)

Heard Mr. Aditya Tripathi, learned counsel appearing for Mr. Paresh Dave, learned advocate for the petitioner.

Admit. Issue Notice.

By means of this petition under Article 226 of the Constitution, the petitioner has prayed for quashing of a show cause notice dated 29.06.2020 issued by the Additional Director General, Directorate of Revenue Intelligence, Ahmedabad Zonal Unit, on the ground that the said officer cannot fall within the definition of a proper officer and as such could not have issued the notice under Sections 28 and 124 of the Customs Act, 1962. Reliance has been placed upon a recent judgment of the

C/SCA/10336/2021 ORDER DATED: 04/08/2021

Supreme Court dated 09.03.2021 passed in Civil Appeal No.1827 of 2018, M/s.Canon India Private Limited vs. Commissioner of Customs, wherein it has been held that officers of Directorate of Revenue Intelligence would not fall within the domain of proper officer for initiating proceedings under Section 28 of the Customs Act, 1962. Prima facie case for interim relief is made out. As an interim measure, we provide that further proceedings pursuant to the impugned show cause notice shall remain stayed. However, any proper officer duly authorized may initiate appropriate proceedings, if deems fit and permissible in law.

(VIKRAM NATH, CJ)

(BIREN VAISHNAV, J) DIVYA