ALO Law Office- IDT Tax I Arbitration I Litigation
Date: 07.10.2025
CESTAT Kolkata Quashes DRI-Issued Show Cause Notice
This Article has been written by Shri Ravi Shekhar Jha, Advocate based in New Delhi. The views expressed are based on his interpretation of the law. He can be reached at his email id intelconsul@gmail.com or on his Mobile +91-9999005379.
In a significant ruling, the Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Kolkata Regional Bench, has set aside an order demanding differential duty from M/s Beriwala Impex Pvt. Ltd. The case revolved around the authority of Directorate of Revenue Intelligence (DRI) officers to issue Show Cause Notices (SCNs) under Section 28 of the Customs Act, 1962. โ This decision reaffirms the legal principles established by the Supreme Court in the Canon India case and sheds light on the scope of powers exercised by DRI officers under the Customs Act. โ
Background of the Case
M/s Beriwala Impex Pvt. โ Ltd. imported LDPE re-processed granules through various ports, including Kolkata, Chennai, and ICD Tughlakabad. โ The Directorate of Revenue Intelligence (DRI) alleged undervaluation of the imported goods, leading to a short levy of customs duty. โ Following an investigation, the DRI issued a Show Cause Notice (SCN) demanding differential duty of Rs. โ 96,42,062, along with interest, confiscation of goods, and penalties. โ
The appellant challenged the SCN, arguing that DRI officers were not “proper officers” under Section 28 of the Customs Act, as clarified by the Supreme Court in Canon India Pvt. โ Ltd. v. Commissioner of Customs.
Source: CESTAT Kolkata
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