Yesterday, On 10th September, Chief Justice of India (CJI) commenced hearings on the customs department’s review petition. The plea seeks a reconsideration of a prior ruling that affected customs operations. The department aims to have the decision reversed, citing significant concerns.
New Delhi: The Supreme Court began hearing a review petition filed by the customs department on Tuesday, challenging its 2021 ruling that officers from the Directorate of Revenue Intelligence (DRI) do not have the authority to recover duties on goods that have already been cleared for import by the customs department.
The case, which has seen several legal developments, previously decided by a three-judge bench led by then Chief Justice S A Bobde on March 9, 2021. The central issue whether the DRI had the power to issue a show cause notice under the Customs Act for the recovery of duties that were allegedly unpaid or underpaid when the goods were cleared by a Deputy Commissioner of Customs, who had initially deemed the imports exempt from duty.
The judgment also addressed whether a specific provision of the Customs Act allowed for the recovery of duty not paid, partially paid, or mistakenly refunded due to collusion, misrepresentation, or suppression of facts by the “proper officer.”
In its 2021 ruling, the Supreme Court determined that it was “entirely impermissible” for an officer who did not issue the original assessment order to reopen that assessment. The court also held that the Additional Director General of the DRI was not a “proper officer” under the Customs Act to recover duties on imported goods.
Subsequently, on May 19, 2022, a bench led by Chief Justice N V Ramana agreed to hear the customs department’s review petition challenging the 2021 Supreme Court verdict in an open court.
On Tuesday, a bench consisting of current Chief Justice D Y Chandrachud, along with Justices J B Pardiwala and Manoj Misra, began hearing the review plea. Additional Solicitor General N Venkataraman initiated arguments, challenging the 2021 decision.
The original 2021 judgment delivered in a batch of cases filed by M/S Canon India Private Limited and other companies against the Commissioner of Customs, contesting a 2017 ruling by the Central Excise and Service Tax Appellate Tribunal (CESTAT).
The CESTAT ruling had upheld a show cause notice issued by the DRI, demanding duty payments from the private firms and imposing penalties, interest, and confiscation of goods under the Customs Act.
The private firms contended that the cameras they imported were exempt from basic customs duty under a 2012 notification.
The exemption for “Digital Still Image Video Cameras” initially issued on March 1, 2005, and subsequently amended in 2012.