Legal principle

DRI officers assigned functions under section 2(34) are proper officers and may issue show cause notices under section 28.

Court decision

A three-judge bench allowed the review and set aside the 2021 judgment. DRI officers are officers of customs and proper officers for sections 17 and 28, having been assigned those functions by the Board under section 2(34), including by the 1999 circular and the 2011 notification. The validity of section 97 of the Finance Act, 2022 was upheld.

Facts

The Customs Department sought review of the 2021 Canon India judgment, which had held that DRI officers were not proper officers for section 28 notices. Meanwhile Parliament had validated past notices through section 97 of the Finance Act, 2022 and inserted section 28(11).

Key provisions

• Section 6 — Entrustment of functions of Board and customs officers on certain other officers
• Section 2 — Definitions
• Section 17 — Assessment of duty
• Section 5 — Powers of officers of customs
• Section 28 — Recovery of duties not levied or not paid or short-levied or short- paid or erroneously refunded