The Lucknow Bench of the Allahabad High Court while disposing the petition has directed that the Additional Director General (ADG) Revenue Intelligence to decide an important question: can revenue authorities issue summons under Customs Act.
The Division Bench of Justice Vivek Chaudhary and Justice Om Prakash Shukla passed this order while hearing a petition filed by M/S Lasterra Exim India Pvt Ltd through Managing Director and Another.
The Petitioners have approached the Court challenging the summons dated 18.10.2023 and 07.11.2023 issued by the Additional Director General, Directorate of Revenue Intelligence, Lucknow Zonal Unit, 2/31, Vishal Khand, Lucknow U.P and Senior Intelligence Officer, Lucknow Zonal Unit, Directorate of Revenue Intelligence, 2/31, Vishal Khand, Lucknow, UP. The said summons are issued under Section 108 of Customs Act, 1962. Notices were issued requiring petitioners to appear before the authority concerned on 27.10.2023 and thereafter on 23.11.2023.
Counsel for petitioners submitted that thereafter further summons were also issued to petitioners, though, petitioners could not appear.
Counsel for petitioners further submitted that petitioner no 1 has already put in appearance through petitioner no 2 and petitioner no 2 has also filed power of attorney of an advocate.
Counsel for petitioners also submitted that revenue authorities have no jurisdiction to issue said summons as such the power vests only with the custom department under the Customs Act, 1962 and petitioners’ case is covered by judgment of Supreme Court in case of ‘Canon India Private Limited Vs Commissioner of Customs’, reported in AIR 2021 SC 1699.
Counsel for respondent department raises a preliminary objection that petitioner can raise the said objections before the respondent no 2 Additional Director General, Directorate of Revenue Intelligence, Lucknow Zonal Unit, 2/31, Vishal Khand, Lucknow, U.P and the same shall be considered and decided by respondent no 2 after giving an opportunity of hearing to petitioner.
Looking into the facts and circumstances of the case, the Court permitted the petitioners to raise all their objections along with a certified copy of the order before respondent no 2 within a period of one week.
“In case such objections are raised, respondent no 2 shall consider and decide the same, in accordance with law, by a reasoned and speaking order, after giving an opportunity of hearing to petitioners within a period of three weeks from the date the objections along with a certified copy of the order are filed.
It goes without saying that any adverse order passed against petitioners can be challenged in appropriate proceedings”, the order reads.
With the aforesaid, the Court disposed of the petition.