Delhi HC quashes CESTAT Ruling Invalidating DRI’s Jurisdiction to Issue Notices u/s 28 of Customs Act [Read Order]
The Delhi High Court quashed a CESTAT order that invalidated DRI’s jurisdiction under Section 28 of the Customs Act, reaffirming its authority in light of the Supreme Court’s Canon-II ruling.
![Delhi HC quashes CESTAT Ruling Invalidating DRI’s Jurisdiction to Issue Notices u/s 28 of Customs Act [Read Order]](https://www.taxscan.in/wp-content/uploads/2025/04/Delhi-HC-Quashes-CESTAT-taxscan.jpg "Delhi HC quashes CESTAT Ruling Invalidating DRI’s Jurisdiction to Issue Notices u/s 28 of Customs Act [Read Order]")
In a recent decision, the Delhi High Court quashed a ruling by the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) that had invalidated the jurisdiction of the Directorate of Revenue Intelligence (DRI) to issue show cause notices under Section 28 of the Customs Act, 1962. The case arose from a customs appeal filed by the Commissioner of Customs (Import), ICD, TKD, New...
In a recent decision, the Delhi High Court quashed a ruling by the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) that had invalidated the jurisdiction of the Directorate of Revenue Intelligence (DRI) to issue show cause notices under Section 28 of the Customs Act, 1962.
The case arose from a customs appeal filed by the Commissioner of Customs (Import), ICD, TKD, New Delhi, challenging the CESTAT Final Order dated 5 April 2022 in favour of the respondent Ashok Singhla. The CESTAT had relied on the Supreme Court’s earlier decision in Canon India Pvt. Ltd. v. Commissioner of Customs (2021), commonly referred to as Canon-I, which held that officers of the DRI were not proper officers for issuing show cause notices under Section 28 of the Customs Act.
The Supreme Court later clarified this position in its judgment in Commissioner of Customs v. Canon India Pvt. Ltd. (Canon-II), where it ruled that officers of the DRI and other similarly placed authorities are proper officers within the meaning of Section 28 of the Customs Act and are fully empowered to issue such notices. The court laid out clear directions on how pending and disposed cases involving this jurisdictional issue should be handled.
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A division bench comprising Justice Prathiba M. Singh and Justice Rajneesh Kumar Gupta observed that the matter had already settledin Canon-II. The court held that the basis on which the CESTAT had set aside the order-in-original no longer holds ground.
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The court ruled that the matter must be reconsidered on the merits without the limitation imposed by the Canon-I ruling. The court set aside the CESTAT order and remanded the case for fresh adjudication.
The High Court directed that Customs Appeal No. 52362 of 2016 be restored before CESTAT for hearing and be listed for further proceedings on 22 July 2025. It also ordered that a copy of the judgment be communicated to the Registrar of CESTAT. The appeal was allowed, and all pending applications were disposed of.
To Read the full text of the Order CLICK HERE
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