Messrs Richlook Creations Pvt. ... vs Union Of India
2021 Latest Caselaw 5803 Guj

      C/SCA/6770/2021                                      ORDER DATED: 10/06/2021




            IN THE HIGH COURT OF GUJARAT AT AHMEDABAD

              R/SPECIAL CIVIL APPLICATION NO. 6770 of 2021
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                  MESSRS RICHLOOK CREATIONS PVT. LTD.
                                Versus
                            UNION OF INDIA
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Appearance:
MR 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. 1,2,3,4,5
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  CORAM: HONOURABLE THE CHIEF JUSTICE MR. JUSTICE VIKRAM NATH
         and
         HONOURABLE MR. JUSTICE BIREN VAISHNAV

                           Date : 10/06/2021
                            ORAL ORDER

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

1. We have heard Shri Paresh M. Dave, learned counsel for the petitioners.

2. Admit. Issue Notice.

3. By means of this petition under Article 226 of the Constitution, the petitioners have prayed for quashing of a show cause notice dated 14.08.2019 issued by the Additional Director General, Directorate of Revenue Intelligence, Ludhiana 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 Supreme Court dated 09.03.2021 passed in Civil Appeal No.1827 of 2018, M/s.Canon India Private Limited vs.

C/SCA/6770/2021 ORDER DATED: 10/06/2021

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. Pursuant to the aforesaid show cause notice an adjudication order has since been passed on 31.12.2020. Shri Dave submitted that even the adjudication order is under challenge by means of this petition as the Supreme Court in the case of M/s.Cannon India Private Limited (supra) has held that any demand raised pursuant to such show cause notices issued without jurisdiction would also be bad in law. He therefore submits that interim relief against the demand may be granted in favour of the petitioners.

4. In view of the above and for the reasons that a number of similar petitions where challenge is on the basis of M/s. Cannon India Private Limited (supra), interim orders are passed, we provide as an interim measure that till further orders of this Court, the respondents shall not insist for recovery of any demand pursuant to the impugned adjudication order dated 31.12.2020 passed by the Commissioner of Customs, NS­V.

(VIKRAM NATH, CJ)

(BIREN VAISHNAV, J) GAURAV J THAKER