In support of DGCEI – Jurisdiction issue sorted out and how!!

By A Netizen

NEW DELHI, JULY 06, 2009: TIOL while reporting 2009-TIOL-75-CESTAT-MAD had noted as following “It is strange to lose a case on jurisdiction issue, more so, when the case was handled by the “Premium Intelligence Agency” like DGCEI.”

The Tribunal in unambiguous words had held that the officers of DGCEI have no jurisdiction in respect of the cases under the Customs Act, 1962.

The case was fought on the grounds that in the absence of Notification by the Central Board of Excise and Customs specifying the territory for the Additional Director-General of Central Excise Intelligence to function as ‘Officer of Customs’ so appointed by the Central Government under Notification No.31/2000-Cus. (NT) dt.9.5.2000 as amended by Notification No.69/2000-Cus. (NT) dt.23.11.2000, the ADGCEI had no jurisdiction to issue the SCN covering the imports made by them.

TIOL in its hard hitting style had commented “Why can’t the Notifications be drafted with a little more care and without any flaws? Why just one line about the area of jurisdiction was not mentioned in Notification 31/2000 Cus (NT) as was done in the case of Notification 17/2002-Customs (N.T), dated 7.3.2002 issued for officers of DRI? Even otherwise, why the DGCEI chose to take up the case when they can easily pass on the intelligence to the DRI as these are customs cases? Does the performance of the individual formations take primacy over the overall revenue interest? May be it is time for both the formations to have a re-look at their information sharing and strive to protect the revenue interest than the individual performances.”

Though Notification No 27/2009 (NT) dated 17 March 2009 was issued which provided for officers of DGCEI to act as officers of customs , with all India jurisdiction the same could not take care of the damage to Revenue already inflicted by the such decisions. 

The power packed words seemed to have its resonance to the FM core team and here we have the changes which will bring the smile back to the top notch of DGCEI.

This budget has now given it the “God of hand” by way of a retrospective effect from 9th May 2000. Validation clause has been put to place in the Finance Bill to validate appointment of officers of customs under sub-section (1) of section 4 read with sub-section (1) of section 5 of Customs Act, 1962 and specifying their jurisdiction vide notification no 27/2009 – Customs (N.T) dated 17 March 2009 and to validate action taken by such officer of customs on and from 9 May 2000, as if their area of jurisdiction as specified in the said notification was in force at all material times.