Supreme Court Reviews Landmark DRI Customs Duty Case

The Supreme Court began reviewing a 2021 judgement questioning the Directorate of Revenue Intelligence's (DRI) authority in recovering duties on already cleared imports. Previously, the court ruled against DRI's power to re-open assessments, which satisfied Canon India and other firms. Now, the customs department seeks a reversal of that decision.

The Supreme Court on Tuesday began reviewing a plea from the customs department to reconsider its 2021 judgement. The original decision determined that the Directorate of Revenue Intelligence (DRI) lacked authority to recover duties on goods once cleared by customs.

The case, decided by a three-judge bench led by then-Chief Justice S A Bobde on March 9, 2021, explored whether the DRI could issue a show cause notice for allegedly unpaid duties on previously cleared goods. The court had found it 'completely impermissible' for an officer not involved in the original assessment to reopen it.

Additional Solicitor General N Venkataraman presented arguments challenging the 2021 decision, aiming to reverse the ruling that had favored Canon India and other firms. The 2021 verdict opposed the DRI's actions upheld by the Central Excise and Service Tax Appellate Tribunal.

(With inputs from agencies.)