The Supreme Court of India has upheld the powers of the Directorate of Revenue Intelligence (DRI) to issue notices under Section 28 of the Customs Act. This significant decision affirms the legislative intent behind Section 28, enhancing enforcement capabilities.
Supreme Court Affirms DRI Authority
The Supreme Court of India has allowed a review of previously contested decisions and has upheld the authority of the Directorate of Revenue Intelligence (DRI) to issue notices under Section 28 of the Customs Act. The court set aside previous judgments that had questioned this authority, reinforcing the legitimacy of the DRI's role in customs enforcement.
This ruling clarified that DRI officers are indeed proper officers under Section 28, which pertains to the recovery of duties in cases of short payment or non-payment of customs duties. The Court emphasized that such enforcement powers are essential for maintaining the integrity of the customs revenue system.
Key provisions cited included Section 28 of the Customs Act and Section 97 of the Finance Act, 2022, which provide the DRI with extended operational frameworks to combat customs violations effectively. This strong reaffirmation of DRI powers underscores the importance of rigorous enforcement in customs operations.
Legal professionals should note the implications of this ruling as it reinforces the DRI's capabilities and supports customs authorities’ actions against evasion and non-compliance. Practitioners must ensure that compliance measures are adequate and aligned with this affirmation of the DRI's authority.
Citations
- Supreme Court Decision (2026) Volume Reporter Page