Customs Act Review: Supreme Court Revisits DRI's Authority

The Supreme Court is reviewing a 2021 verdict that questioned the Directorate of Revenue Intelligence (DRI)'s authority under the Customs Act to seek recovery of duties on imported goods. The customs department argues there are errors in the judgement and insists that DRI officers have the right to issue show cause notices for recovery of duties.

The Supreme Court is delving into a pivotal case concerning the authority of the Directorate of Revenue Intelligence (DRI) under the Customs Act. The customs department has sought a review of the 2021 Supreme Court verdict which ruled that DRI officers are not 'proper officers' for duty recovery on imported goods.

The initial judgement, led by then Chief Justice S A Bobde, had overturned DRI's authority, impacting several private firms, including Canon India Private Limited. The customs department now claims that there were six evident errors in the judgement, failing to consider significant legal provisions.

The review, currently before a bench led by Chief Justice D Y Chandrachud, aims to reassess DRI's standing within the Customs Act framework. Additional Solicitor General N Venkataraman has emphasized that since 1977, customs and DRI officials have been integrated under the Union Ministry of Finance, forming a unified cadre of officers. The hearing will continue on Thursday.

(With inputs from agencies.)