"Revenue Intelligence Directorate Also Has the Right to Levy Fees": Supreme Court

"Revenue Intelligence Directorate Also Has the Right to Levy Fees": Supreme Court

The Customs Department informed the Supreme Court on Wednesday that under the Customs Act, the Directorate of Revenue Intelligence (DRI) also has the authority to demand fees on goods approved for import. The Customs Department has requested the Supreme Court to reconsider its 2021 decision, which had ruled otherwise.

In a decision from March 2021, a three-judge bench led by then CJI S.A. Bobde stated that under the Customs Act, 1962, DRI officials were not considered "proper officers" and did not have the authority to demand fees on pre-approved imports by the Customs Department. The Supreme Court had annulled the notices issued by DRI to private companies, including M/s Canon India Private Limited, which demanded payment of fees.

The Customs Department, through Solicitor General Tushar Mehta, argued before the bench headed by CJI D.Y. Chandrachud that the earlier decision was based on erroneous interpretations of the law. Mehta pointed out that since 1977, the Customs Department and DRI have been integral parts of the Ministry of Finance, and their officials are indeed authorized under the law to levy fees.

Mehta emphasized that the decision incorrectly suggested that DRI officials were not "proper officers" under the Customs Act. He clarified that DRI, as a separate division under the Ministry of Finance, has the legal authority to act and levy fees on imports, just like the Customs Department. The petition for review seeks to correct this legal position and restore the authority of DRI officials as recognized under existing financial regulations.