The Supreme Court on Wednesday reviewed a request from the customs department seeking to overturn a 2021 ruling that limited the authority of the Directorate of Revenue Intelligence under the Customs Act.
The department argues that DRI officials should be allowed to recover duties on goods already cleared for import, contrary to the earlier judgment which held that DRI officers lacked this authority.
The 2021 verdict, delivered by a bench led by then Chief Justice SA Bobde, had ruled that DRI officials were not “proper officers” under the Customs Act and could not issue recovery notices for duties on imported goods. This decision had led to the quashing of DRI’s notices to companies, including M/S Canon India, demanding duty payments, interest, and penalties.
Additional Solicitor General N Venkataraman, representing the customs department, argued that the 2021 judgment contained errors and failed to consider key legal provisions. He emphasized that DRI officers are part of the customs framework and should be authorized to handle duty recovery. “A DRI officer today can be a customs official tomorrow,” he said.
The case has seen various legal developments. Initially decided by CJI Bobde’s bench, which ruled against the customs department, the matter involves whether DRI has the power to issue show cause notices for duties not levied or paid when goods were cleared by customs officers. The apex court had previously determined that an officer who did not make the original assessment should not be allowed to reopen it.
The current review plea is being heard by a bench led by Chief Justice D Y Chandrachud. This follows a May 2022 decision by a bench headed by CJI N V Ramana to hear the customs department’s review plea in open court.
The 2021 judgment was challenged by M/S Canon India and other firms, arguing that their imports were exempt from customs duty under a 2012 notification, which amended earlier duty exemptions for digital cameras.
The hearing will continue on Thursday.
