Calcutta High Court Stays Show-Cause Notice Issued By DIR By Questioning Its Authority.
The Calcutta High Court stayed the show-cause notice issued on 13 April, 2020 by the Directorate of Revenue Intelligence (DRI) u/S. 124 read with Section 28 of the Customs Act, 1962 by questioning its authority.
A Single Judge Court of Justice MD. Nizamuddin in the High Court of Calcutta, dealt with the matter titled M/s. Aktel By Proprietorship Anand Kumar & Ors v. Union Of India & Ors.
The Petitioner – Company through this petition had challenged the show-cause notice issued on 13 April, 2020 by the Directorate of Revenue Intelligence (DRI) u/S. 124 read with Section 28 of the Customs Act, 1962.
The Court relied on a judgment of the Supreme Court passed in M/s. Canon India Private Limited v. Commissioner of Customs in Civil Appeal No.1827 of 2018 wherein it was held that the DRI had no authority to issue any show-cause notice u/S. 28 of the Customs Act, 1962. By considering the aforesaid judgment, the Court found a prima facie case for staying the show cause notice.
The Court chose not to go into the merits of the case and directed the Respondent – Authorities to file an affidavit-in-opposition.
The Court therefore, stayed the show-cause notice considering the judgment of the Supreme Court till 3 January, 2022.