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CBIC issues fiat to put justice delivery on indefinite hold - Canon stonewalled!

MARCH 18, 2021

By R K Singh

IN the wake of the Supreme Court's order dated 9th March 2021 in the case of Canon India - 2021-TIOL-123-SC-CUS-LB that DRI cannot issue show cause notice under s. 28(4) of the Customs Act 1962 thereby rendering all such show cause notices liable to be quashed in limine, Central Board of Indirect Taxation and Customs (CBIC) has, yesterday, issued a fiat in the form of letter F No. 450/72/2021-Cus-IV to DRI that such a show cause notice "for the present and until further directions be kept pending".

2. Some of the ramifications of CBIC fiat are as under:

(i) It implies that the quasi-judicial authorities can be directed as to when to adjudicate and when not to. Thus, the independence of the quasi-judicial authorities goes for a six. Indeed, it can form a reasonable basis for approaching the Constitutional courts for taking away the adjudicatory functions from the Customs officers to maintain the sanctity of the adjudication process.

(ii) It also thumbs the nose to Supreme Court that its orders, law of the land as they are, can be thwarted by the Executive by simply directing the quasi-judicial officers not to implement them and by keeping the related matters pending indefinitely.

(iii) At a more fundamental level, CBIC has arrogated to itself the power to put on hold the justice delivery, a power which even Supreme Court will demur to claim to possess.

3. In this unseemly development, even a moment's thought does not seem to have been spared to the taxpayer's plight as to why it should be deprived of timely justice delivery even after the issue stands decided by the highest court. Strange are the ways of bureaucracy, stranger of Indian bureaucracy.

4. Fortunately, the Constitutional courts are not bound by CBIC fiats. If a taxpayer approaches the Constitutional Court for quashing a DRI notice citing the Canon judgement, in all likelihood, the Hon'ble court will oblige even before the Counsel is able to adjust his collar to address the court.

[The author is former Member CESTAT and Sr Partner, TLC Legal Advocates. The views expressed are strictly personal.]

(DISCLAIMER : The views expressed are strictly of the author and Taxindiaonline.com doesn't necessarily subscribe to the same. Taxindiaonline.com Pvt. Ltd. is not responsible or liable for any loss or damage caused to anyone due to any interpretation, error, omission in the articles being hosted on the site)

 RECENT DISCUSSION(S) POST YOUR COMMENTS
   
 
Sub: CBIC issues fiat to put justice delivery on indefinite hold Canon stonewalled

With all due regards to Shri R K Singh I would like to say that he has gone tangential to the issue. The Central Govt. has been vested with powers to issue directions to it's officers for the sake of uniformity in assessment and adjudication is part of assessment. There appears nothing illegal in this direction.
Kishori Lal
Principal Commissioner (Retd)

Posted by cestat cestat
 

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