Penalty can't be levied via SCN issued by DRI as DRI does not have the jurisdiction to issue SCN

Last updated: 23 July 2021

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Quick Summary

The CESTAT, Chennai ruled that penalties cannot be imposed based on a Show Cause Notice (SCN) issued by the Directorate of Revenue Intelligence (DRI) if the DRI lacks the necessary jurisdiction. This decision, following a Supreme Court precedent, declared the SCN and subsequent proceedings void from the outset, meaning no penalty could be levied.

Court :
CESTAT, Chennai

Brief :
In M/s. Sattva CFS & Logistics Private Limited v. The Commissioner of Customs [Custom Appeal No. 41681 of 2021 decided on July 15, 2021] M/s. Sattva CFS & Logistics Private Limited ('the Appellant') contended that the Directorate of Revenue Intelligence ('DRI') had issued Show Cause Notice ('SCN') on the allegations of seizure of Red Sanders to the levy of penalty under Section 114 of the Customs Act, 1962 ('the Customs Act').

Citation :
Custom Appeal No. 41681 of 2021 decided on July 15, 2021

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Judgement posted by

Bimal Jain

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FCA, FCS LLB with21 Yrs of Experience inTaxation Indirect and Direct: Education Qualification: B.Com (Hons) Chartered Accountants Company Secretary LLB Qualified SAP FI/CO Consultants Professional Membership: Chairmanof Indirect Tax Committee of PHD Chamber of Commerce Member of Indirec ... Read more

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